AAMES MORTGAGE: Fitch Cuts Rating to BB from BBB- on $4.1MM Certs.------------------------------------------------------------------Fitch Ratings has taken rating actions on Aames Mortgage Investment Trust mortgage pass-through certificates. Affirmations total $99 million and downgrades total $4.1 million. Additionally, $4.1 million was placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as:

The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness.

Aberdeen Loan Funding Ltd. and Aberdeen Loan Funding Corp. is a collateralized loan obligation with a seven-year reinvestment period that is managed by Highland Capital Management L.P. The closing portfolio's weighted average purchase price is 87.4% of par. The liabilities' weighted average sale price is 88.28%.

-- The characteristics of the underlying collateral pool, which consists primarily of non-investment-grade rated senior secured loans, second-lien loans, bonds, and structured finance obligations, up to 20% of which may be referenced synthetically or represent participation interests;

-- Scenario default rates of 54.13% for class A and B, 48.23% for class C, 43.1% for class D, and 36.56% for class E; and break-even loss rates of 67.78% for class A, 59.23% for class B, 56.69% for class C, 49.98% for class D, and 38.9% for class E;

-- A weighted average rating of 'B';

-- A weighted average maturity for the portfolio of 5.6 years;

-- An S&P default measure of 5.47%;

-- An S&P variability measure of 3.24%; and

-- An S&P correlation measure of 2.00.

Interest on the class C, D, and E notes may be deferred up until the legal final maturity date in November 2018 without causing a default under these obligations. The ratings on these notes, therefore, address the ultimate payment of interest and principal.

ABITIBIBOWATER INC: Exchange Offer for Senior Notes Ends April 4----------------------------------------------------------------AbitibiBowater Inc. said that Abitibi-Consolidated Company of Canada, its indirect subsidiary, has extended the withdrawal deadline for its exchange offers for 6.95% senior notes due 2008, 5.25% senior notes due 2008 and 7.875% senior notes due 2009.

The exchange offers will expire at 12:00 midnight, New York City time, on Friday, April 4, 2008.

The withdrawal deadline for the exchange offers was extended until March 27, 2008, and the withdrawal deadline expired on March 26, 2008. Neither the consent payment deadline nor the expiration date for the exchange offers has been modified.

Investors Agree to Senior Notes Restructuring

The Canadian Press reports that AbitibiBowater's investors consented to the restructuring of the company's senior notes aggregating $496 million. The report says that as of March 27, 2008, investors surrendered between 89.3% and 93.2% of the notes. The senior notes restructuring is under AbitibiBowater's plan to secure $1.4 billion additional capital, Canadian Press relates.

The exchange offers were being made only to qualified institutional buyers and institutional accredited investors inside the United States and to certain non-U.S. investors located outside the United States.

As reported in the TCR on March 28, 2008, AbitibiBowater Inc. disclosed in its 2007 annual report that Abitibi-Consolidated Inc.'s independent auditor PricewaterhouseCoopers LLP inMontreal, Quebec, Canada, expressed substantial doubt about Abitibi's ability to continue as a going concern.

Abitibi-Consolidated is currently experiencing a liquidity shortfall and faces significant near-term liquidity challenges. For the year ended Dec. 31, 2007, Abitibi reported a net loss of CDN$714 million, negative cash flows from operating activities of CDN$468 million and reported an accumulated deficit of CDN$1.591 billion as at Dec. 31, 2007.

At Dec. 31, 2007, Abitibi-Consolidated's balance sheet showed CDN$6.572 billion in total assets, CDN$5.026 billion in total liabilities, and CDN$1.546 billion in total stockholders' equity.

Abitibi's balance sheet at Dec. 31, 2007, showed strained liquidity with CDN$1.009 billion in total current assets available to pay CDN$1.416 billion in total current liabilities.

Abitibi has a total of $346 million of long-term debt that matures in 2008:

-- $196 million principal amount of its 6.95% Notes due April 1, 2008, and

-- $150 million principal amount of 5.25% Notes due June 20, 2008, issued by Abitibi-Consolidated Company of Canada, a wholly owned subsidiary of Abitibi.

Abitibi also has revolving credit facilities with commitments totalling $710 million maturing in the fourth quarter of 2008. None of these debts have yet been refinanced. These circumstances lend substantial doubt as to the ability of Abitibi to meet its obligations as they come due and, accordingly, substantial doubt as to the appropriateness of the use of accounting principles applicable to a going concern.

To address these near-term liquidity challenges, Abitibi, and its parent company, AbitibiBowater Inc., have developed a refinancing plan to address upcoming debt maturities and general liquidity needs designed to enable Abitibi to repay the $346 million due in April and June 2008 and to repay all its maturities due in 2009, while continuing to fund Abitibi's operations, debt service and capital expenditures, so it can continue as a going concern.

This refinancing plan is expected to consist of:

-- a $200 million to $300 million of new senior unsecured exchange notes due 2010;

-- up to $450 million of a new 364-day senior secured term loan secured by substantially all of Abitibi's assets other than fixed assets;

-- approximately $400 million of new senior secured notes or a term loan due 2011 secured by fixed assets; and

-- $200 million to $300 million of new convertible notes of AbitibiBowater.

About AbitibiBowater

Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH)-- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated. Pursuant to the transaction, Abitibi-Consolidated Inc. and BowaterIncorporated became subsidiaries of AbitibiBowater. The companyproduces a range of forest products marketed in more than 80countries around the world. The company's customers include manypublishers, commercial printers, retailers, consumer productscompanies and building supply outlets. AbitibiBowater is also arecycler of newspapers and magazines. The company owns oroperates 32 pulp and paper mills and 35 wood products facilitiesin North America and offshore. The company manages its businessin five segments: coated papers, specialty paperBs, newsprint,market pulp and lumber.

ABITIBIBOWATER INC: Noteholder Withdrawal Rights in Offer Expires-----------------------------------------------------------------AbitibiBowater Inc. disclosed that the withdrawal rights of noteholders in the exchange offers by Abitibi-Consolidated Company of Canada, a subsidiary of AbitibiBowater, expired at 5:00 p.m. New York City time, on March 27, 2008.

These exchange offers are for the 6.95% Senior Notes due 2008, 5.25% Senior Notes due 2008 and 7.875% Senior Notes due 2009. As of the withdraw deadline, approximately 89.3% of the outstanding 6.95% Senior Notes, 91.8% of the outstanding 5.25% Senior Notes and 93.2% of the outstanding 7.875% Senior Notes had been validly tendered in the exchange offers.

Based on these preliminary results, ACCC has elected to waive the minimum tender condition with respect to the exchange offers. The exchange offers expire at 12:00 midnight, New York City time, on April 4, 2008.

The exchange offers were made only to qualified institutional buyers and institutional accredited investors inside the United States and to certain non-U.S. investors located outside the United States.

About AbitibiBowater

Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH)-- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated.Pursuant to the transaction, Abitibi-Consolidated Inc. and BowaterIncorporated became subsidiaries of AbitibiBowater. The companyproduces a wide range of newsprint, commercial printing papers,market pulp and wood products and markets these products to morethan 90 countries.

Following the required divestiture agreed to with the U.S.Department of Justice, AbitibiBowater will own or operate 27 pulpand paper facilities and 35 wood products facilities located inthe United States, Canada, the United Kingdom and South Korea. Thecompany also has newsprint sales offices in Brazil and Singapore.The company's shares also trade at the Toronto Stock Exchangeunder the stock symbol ABH.

* * *

As reported in the Troubled Company Reporter on March 27, 2008,Moody's Investors Service assigned a B1 rating to the proposed new$450 million secured term loan at Abitibi-Consolidate Inc'ssubsidiary Abitibi-Consolidated Company of Canada. At the sametime, Moody's affirmed Abitibi's corporate family rating of Caa1,the probability-of-default rating of Caa3, the senior unsecuredratings of Caa2 and the B1 rating assigned to the new $415 millionsecured notes due 2011. In addition, Abitibi's speculative gradeliquidity rating was affirmed at SGL-4 and the rating outlookremains negative.

ABITIBIBOWATER INC: Inks Agreement for Private Placement of $350MM------------------------------------------------------------------AbitibiBowater Inc. disclosed on March 24, 2008, that it has entered into a definitive agreement with Fairfax Financial Holdings Limited for an investment by Fairfax and itsdesignated subsidiaries in AbitibiBowater of $350 million in the form of unregistered convertible debentures.

This transaction, which is part of the company's previously announced $1.4 billion refinancing plan, is expected to address upcoming debt maturities and general liquidity needs of its Abitibi-Consolidated Inc. subsidiary. There is no financing condition to the obligations of Fairfax to fund the transaction.

The $350 million of convertible debentures is convertible intoAbitibiBowater common shares at $10.00 per share, carries an 8% cash coupon, has an ability for the company to pay interest in the form of additional "pay-in-kind" debentures at a rate of 10%, and has a subsidiary guarantee. The debentures have a maturity of 5 years and are non-callable.

The transaction is subject to certain conditions, including the receipt of various lender consents and the closing of the other components of the company's $1.4 billion refinancing plan. Under the Fairfax Purchase Agreement, Fairfax will have the right to appoint two directors to the Board of Directors of the company.

In connection with the approval of the Fairfax transaction by the Board of Directors of AbitibiBowater, and pursuant to an exception provided by the New York Stock Exchange stockholder approval policy, the Audit Committee of AbitibiBowater determined that a delay in the transaction in order to secure stockholder approval of the issuance of the convertible debentures, given thepending maturities of Abitibi-Consolidated's April 1 and June 20, 2008 senior notes, as well as the current state of the credit and capital markets, could seriously jeopardize the financial viability of AbitibiBowater.

Accordingly, AbitibiBowater's Board of Directors and Audit Committee expressly approved the company's decision not to seek stockholder approval of the issuance of the convertible debentures to Fairfax. The New York Stock Exchange has accepted AbitibiBowater's reliance on the exception and the company, in reliance upon this exception, is mailing a letter to all stockholders notifying them of its intention to issue the convertible debentures without their prior approval.

About Fairfax

Fairfax Financial Holdings Limited (TSX and NYSE: FFH) is a financial services holding company which, through its subsidiaries, is engaged in property and casualtyinsurance and reinsurance and investment management.

About AbitibiBowater

Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH)-- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated.Pursuant to the transaction, Abitibi-Consolidated Inc. and BowaterIncorporated became subsidiaries of AbitibiBowater. The companyproduces a wide range of newsprint, commercial printing papers,market pulp and wood products and markets these products to morethan 90 countries.

Following the required divestiture agreed to with the U.S.Department of Justice, AbitibiBowater will own or operate 27 pulpand paper facilities and 35 wood products facilities located inthe United States, Canada, the United Kingdom and South Korea. Thecompany also has newsprint sales offices in Brazil and Singapore.The company's shares also trade at the Toronto Stock Exchangeunder the stock symbol ABH.

* * *

As reported in the Troubled Company Reporter on March 12, 2008,Standard & Poor's Ratings Services assigned its 'B-' long-termcorporate credit rating to AbitibiBowater Inc. The outlook isnegative.

As reported in the Troubled Company Reporter on March 28, 2008,AbitibiBowater Inc. disclosed in its 2007 annual report that itswholly owned subsidiary, Abitibi-Consolidated Inc. "is currentlyexperiencing a liquidity shortfall and liquidity problems andthere is substantial doubt about Abitibi's ability to continue asa going concern."

ACUSPHERE INC: Deloitte & Touche Expresses Going Concern Doubt--------------------------------------------------------------Deloitte & Touche LLP in Boston raised substantial doubt about the ability of Acusphere, Inc. to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor pointed to the company's recurring losses from operations, negative cash flows from operations, and the projected funding needed to sustain its operations

The company posted a net loss of $53,730,000 on total sales of $2,667,000 for the year ended Dec. 31, 2007, as compared with a net loss of $61,089,000 on total sales of $1,781,000 in the prior year.

At Dec. 31, 2007, the company's balance sheet showed $52,020,000 in total assets, $28,280,000 in total liabilities and $23,740,000 in stockholders' equity.

Going Concern

Management stated that as of Dec. 31, 2007, the company had cash and equivalents of $26,100,000. During the 12 months ended Dec. 31, 2007, operating activities used $41,700,000 of cash. Before the end of the second quarter of 2008, the company will require significant additional funds in order to fund operations.

As a result of its limited capital resources, the company may elect to delay the funding of certain development activities, which could harm its financial condition and operating results. The depletion of its resources may make future funding more difficult or expensive to attain. The company may raise additional funds through public or private sales of equity or from borrowings or from strategic partners.

Future capital requirements will depend on many factors including the scope and progress made in research and development activities and the size and timing of creating expanded manufacturing capabilities.

There are no assurances, however, that the company will be able to obtain additional financing on favorable terms, or at all, or successfully market its products. If the company is unable to execute its operations according to its plans or to obtain additional financing, it may be forced to cease operations.

"We are focused on product development and we have not generated any revenue from commercial sales of our products to date. We have incurred losses each year of our operations. In 2007, we had a net loss available to holders of common stock of $56 million. At Dec. 31, 2007, we had an accumulated deficit of $334.9 million. We expect our research and development, general and administrative and sales and marketing expenses will increase over the next several years," the company said.

Based in Watertown, Mass., Acusphere, Inc. (NasdaqGM:ACUS) -- http://www.acusphere.com/-- a specialty pharmaceutical company, develops new drugs and formulations of existing drugs using its proprietary porous microparticle technology in the United States. Its porous microparticle technology enables to control the size and porosity of particles, including nanoparticles and microparticles. The company develops products in the areas of cardiology, oncology, and asthma. Its lead product candidate Imagify, a cardiovascular drug, is in Phase 3 clinical development for the detection of coronary artery disease. The company's products also include AI-850, a Phase 1 clinical trial completed product candidate that utilizes hydrophobic drug delivery system to improve the dissolution rate of a cancer drug; AI-128, a Phase 1 clinical study completed formulation of asthma drug. Acusphere was founded in 1993.

As reported in the Troubled Company Reporter on March 20, 2008, AGY Holding was soliciting consents to certain proposedamendments to the indenture governing its 11% senior second liennotes due 2014, and the intercreditor agreement and consignmentagreement related to the indenture.

After receipt of the consents, the company and certain of its subsidiaries executed a supplemental indenture and amendments to the intercreditor agreement and consignment agreement providing for the amendments. The amendments are operative with respect to all noteholders, including those noteholders who did not consent to the amendments.

Requests for documents should be directed to Global Bondholder Services Corporation at (866) 873-6300 or (212) 430-3774. UBS Securities LLC is serving as Solicitation Agent for the consent solicitation. Questions concerning the terms of the consent solicitation should be directed to UBS Securities LLC, Liability Management Group at (888) 719-4210 or (203) 719-4210.

The company reported financial results for the three and twelve-months ended Dec. 31, 2007.

AFN reported a generally accepted accounting principle or GAAP net loss for the three-months ended Dec. 31, 2007, of $729.3 million compared to net income of $3.6 million for the three-months ended Dec. 31, 2006.

AFN reported a GAAP net loss for the twelve-months ended Dec. 31, 2007 of $1.3 billion as compared to net income of $22.0 million, for the period from Jan. 31, 2006, through Dec. 31, 2006.

The significant losses during the three-months and twelve-months ended Dec. 31, 2007, are due to non-cash charges of approximately $775 million and $1.4 billion, arising from write downs in the fair value of mortgage backed sities, other CDO investments and TruPS investments.

Liquidity and Capital Markets Transactions

As of Dec. 31, 2007, AFN's consolidated financial statementsinclude $80.2 million of available, unrestricted cash and cash equivalents. This amount includes $18.8 million of cash dividends that were paid to AFN shareholders on Jan. 10, 2008.

Management has evaluated AFN's current and forecasted liquidity and continues to monitor evolving market conditions. Future investment alternatives and operating activities will continue to be evaluated against anticipated current and longer term liquidity demands.

As of Dec. 31, 2007, AFN's consolidated financial statements include $95.5 million of restricted cash and warehouse deposits. The $95.5 million is restricted for these purposes:

-- $5.0 million first-loss deposit on an Emporia leveraged loan warehouse facility; -- $47.6 million at consolidated CDO entities to be used to acquire additional assets; and -- $42.9 million of undistributed cash flow from operations at consolidated CDO entities.

Share Repurchase

On Aug. 3, 2007, AFN's board of directors approved a share repurchase plan that authorizes AFN to purchase up to $50 million of AFN common shares. Under the plan, AFN may make purchases from time to time through open market or privately negotiated transactions.

The timing and exact number of shares purchased will be determined at AFN's discretion and will depend on market conditions. This plan may be modified or discontinued at any time. During the three-months ended Dec. 31, 2007, AFN did not repurchase shares of its common stock.

Dividend Summary

AFN disclosed a cash dividend for the quarter ended March 31, 2008, of $0.25 per common share. The dividend will be payable onApril 10, 2008, to shareholders of record as of the close of business on March 20, 2008. The ex-dividend date was March 18, 2008.

AMERICAN HOME: Court Extends Plan Filing Due Date to June 2-----------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware extends the exclusive periods for American Home Mortgage Investors Corp. and its debtor-affiliates to file a plan of reorganization through June 2, 2008, and solicit and obtain acceptances for that plan through July 31, 2008.

James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, said that lots of things must be done in the bankruptcy cases before any party will be in a position to file a Plan and accompanying disclosure statement. He adds that the Debtors, in consultation with the Official Committee of Unsecured Creditors, have determined to seek the 90-day extension.

Mr. Patton related that the Debtors have begun, but not yet completed, negotiations with the Creditors Committee regarding the terms of a consensual Plan or Plans based on adequate information. He, however, pointed out that they have accomplished several things since December 2007:

(a) The Debtors have spent time working with AH Mortgage Acquisition Co., Inc., to facilitate the effective transition of the Servicing Business;

(b) The Debtors have focused on maximizing the value of, and minimizing the administrative burdens related to, the their other major assets, like, among other things, marketing and selling loans and analyzing an efficient and the appropriate disposition of the 1,500,000 mortgage loan files they held through a third party vendor;

(c) The Debtors have focused their time and resources towards maximizing the value of the bankruptcy estates through the disposition of their major assets, including:

-- creation of non-debtor business entities for the transition of the Servicing Business to AHM Acquisition;

-- consummation of a sale with Indymac Bank F.S.B.;

-- approval of procedures to return mortgage loan files to owners or master servicers of the mortgage loans;

-- compromise of certain loans to obtain a greater value for the estates; and

-- approval of procedures to maximize the sale value for certain non-performing loans; and

(d) The Debtors have expended substantial time and resources addressing the numerous pending adversary proceedings and related discovery matters.

Mr. Patton said that, despite the Debtors' accomplishments, the the current Exclusive Periods did not provide them with an adequate opportunity to develop and negotiate a Plan. The contested nature of nearly every facet of the cases has prevented the Debtors and their professionals from devoting significant attention to the preparation and negotiation of a Plan, he said. In addition, the Debtors have had to work with or litigate with numerous large financial entities and other parties-in-interest to obtain approval of the sale of the mortgage loan servicing business. Moreover, the Debtors received various notices of purported defaults from parties to master servicing agreements.

Mr. Patton told the Court that there are a variety of other tasks that lie ahead of the Debtors. The Debtors still have numerous other assets that may be marketed and sold, including their (i) federally chartered thrift and bank, which will need to be sold in a manner consistent with strict regulatory guidelines; (ii) certain whole loans; and (iii) certain other real estate holdings, like their Melville, New York, corporate headquarters.

The resolution of asset sales and the review and analysis of claims will be determinative of the value available to the Debtors' creditors, and must be considered in the formulation of any Chapter 11 plan, Mr. Patton said.

About American Home

Based in Melville, New York, American Home Mortgage InvestmentCorp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investingin mortgage-backed securities and mortgage loans resulting fromthe securitization of residential mortgage loans originated andserviced by its subsidiaries.

AMPEX CORPORATION: Seeks Relief Under Chapter 11------------------------------------------------Ampex Corporation and its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code, according to a regulatory filing with the U.S. Securities and Exchange Commission.

Prior to filing, the company negotiated with and obtained the support of the majority of its secured creditors and its largest unsecured creditor for the terms of a pre-negotiated plan of reorganization, as evidenced by the plan support agreement filed contemporaneously with the company's voluntary petitions for relief under Chapter 11.

Concurrently with the commencement of these cases, the company filed a motion for approval of the disclosure statement with respect to the Plan and related solicitation procedures. The company believes that it will emerge from Chapter 11 no later than fall 2008. During the Chapter 11 proceedings, the company will continue to operate its business without interruption as a debtor-in-possession. All of the company's employees will be retained, offices and manufacturing facilities will remain open and all customer support and warranty programs will continue as planned.

Upon emergence from Chapter 11, Hillside Capital Incorporated , the company's largest secured and unsecured creditor, will provide new financing to the Company that will be used for working capital purposes, to repay certain long term obligations, including certain senior secured notes, and to fund future pension obligations. Ampex began to report in July 2007 that it might be forced to take this action in order to facilitate an orderly financial restructuring.

As was disclosed in its filings with the Securities and Exchange Commission over the previous months, Ampex has been negotiating a consensual refinancing of certain notes that were issued to Hillside over the past several years with respect to pension contributions made by Hillside for the benefit of the Companys defined benefit plans. The Plan is the result of months of arm's-length negotiations between the company, Hillside and holders of a majority of the face amount of the Companys senior secured notes.

The overall purpose of the Plan is to provide for the restructuring of the company's liabilities in a manner designed to maximize recovery to all stakeholders and to enhance the company's financial viability by de-levering the company's capital structure, providing additional liquidity and arranging a long-term financing solution to future pension contributions that does not over-leverage the Company in future years.

Under the Plan, it is contemplated that trade creditors will remain unaffected and will continue to receive cash payments as their claims become due in the ordinary course. Because the company's debt exceeds the amount of its assets, its existing common stock currently has no value, and therefore will be cancelled on the effective date of the Plan.

Under the terms of the proposed Plan, new equity in the reorganized company will be issued to certain creditors. Although holders of existing common stock will not receive new equityunder the Plan, those holders that do not object to the Plan may be eligible to receive some consideration. The Plan also contemplates that the new equity in the reorganized Companywill not be registered or traded on any public exchange.

"Ampex Data Systems Corporation will continue to sell and service data acquisition and instrumentation recorders and we will continue to license our intellectual property to manufacturers of consumer digital video products," D. Gordon Strickland, Ampex's President and Chief Executive Officer, noted that the court filing is not expected to have any significant impact on Ampexs day-to-day operations. "While the restructuring will be an important step towards a more successful future, our primary focus will continue to be our customers and their satisfaction with our products and services."

"In recent years, Ampex has been constrained by its highly leveraged capital structure and by the continuing burden of its significant legacy pension liabilities," Mr. Strickland explained. "Quite simply, we have too much debt. We intend to use the Chapter 11 process to reduce these obligations significantly and to develop and implement a new capital structure that will allow us to invest in our business."

"Fortunately, the fundamentals of our business remain strong and provide an excellent foundation for the future," Mr. Strickland concluded. "We expect that Ampex will emerge from its Chapter 11 reorganization a stronger, more financially viable company, well-positioned for profitable growth."

Other Matters

The company could not file its Annual Report on Form 10-K for the year ended Dec. 31, 2007, within the prescribed period because additional time is required to complete the financial statements, footnotes and disclosures in order to incorporate information contained in the Plan and the related Disclosure Statement in connection with its filing for relief under chapter 11 of the Bankruptcy Code.

The Company currently expects to be able to file its 2007 Form10-K within fifteen calendar days following the prescribed due date, but there can be no assurance that it will be able to doso.

Likely Insufficient Financial Resources

As reported in the Troubled Company Reporter on Jan. 21, 2008,based on its projected operations, the company relates that itwill not have sufficient financial resources or be able togenerate cash flow to service all of its obligations, includingscheduled indebtedness, within the next 12 months and beyond. Inorder for the company to remain a going concern it will berequired to substantially modify the repayment terms of its SeniorNotes well as the Hillside Notes.

Alternatively, the company may be required to issue new equity toholders of all or most of its outstanding debt securities, well asfor debt that will be issued in connection with future pensionplan contributions. Any such issuance of equity for debt wouldresult in current stockholders' ownership interest beingsignificantly diluted and potentially cause a substantial declinein the price of the company's Common Stock. The company cannotgive assurance that it will be successful in restructuring itsindebtedness.

A full-text copy of Ampex's Disclosure Statement is available for free at:

Type of Business: The Debtors are licensors of visual information technology. They have two business segments: Recorders segment and Licensing segment. Their Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. Their Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. See http://www.ampex.com

ASCALADE COMMS: Court OKs Sale of Richmond Property for $8.4 Mil.-----------------------------------------------------------------Ascalade Communications Inc. said that in connection with itsprotection from creditors under the Companies' Creditors Arrangement Act (CCAA), the British Columbia Supreme Court granted an order authorizing and approving the sale of Ascalade's property located in Richmond, British Columbia for $8.4 million.

The property is currently held by one of Ascalade's wholly owned subsidiaries. The Richmond property is an approximately40,000 square foot building that houses Ascalade's corporate headquarters and its research and product development. The sale of the property was to close yesterday, March 31, 2008. No update on the sale is available as of press time.

Any recovery for creditors and other stakeholders, includingshareholders, is uncertain and is highly dependent upon a number of factors, including the recovery from the sale of the Company's factory and equipment in the People's Republic of China, potential claims from customers and suppliers and the outcome of the Scheme of Arrangement in Hong Kong.

Deloitte & Touche Inc., in its capacity as monitor of Ascalade, will continue to work with Ascalade on the restructuring or winding up of the company.

As reported in the Troubled Company Reporter on March 4, 2008, Ascalade intended to seek protection from creditors under the Companies' Creditors Arrangement Act with the British Columbia Supreme Court. Ascalade's board of directors has determined that seeking creditor protection is in the interests of the company, its creditors, shareholders, employees, customers and other stakeholders.

The company related that these actions are necessary because ofthe company's inability to fund operations to meet customerdemand. This is as a result of significant operational challengesdue to difficulty hiring and retaining workers, continued laborand material cost increases, sustained competitive price pressuresand foreign exchange variations impacting the business.

The intent of the CCAA filing was to enable Ascalade to continueits day to day operations for as long as possible or until itsCCAA status changes.

About Ascalade Communications Inc.

Based in Richmond, British Columbia, Ascalade Communications Inc.(TSE:ACG) -- http://www.ascalade.com/ -- is an innovative product company that designs, develops and manufactures digital wirelessand communication products. The company deliver products byoffering its partners and customers complete vertical integration,from product design and development to final production. Thecompany's products include digital cordless phones, Voice overInternet Protocol phones, digital wireless baby monitors anddigital wireless conference phones. Ascalade products have beendistributed in over 35 countries and under 80 regional brands. Ascalade also has facilities in Qingyuan, China, Hong Kong and asales office in Hertfordshire, United Kingdom.

ASCALADE COMMS: British Columbia Court OKs $8MM Sale of Property ----------------------------------------------------------------Ascalade Communications Inc. disclosed that in connection with theprotection from its creditors under the Companies' Creditors Arrangement Act, the British Columbia Supreme Court granted an order authorizing and approving the sale of Ascalade's property located in Richmond, British Columbia, for $8.4 million.

The property is currently held by one of Ascalade's subsidiaries. The Richmond property is an approximately 40,000 square foot building that houses Ascalade's corporate headquarters andits research and product development. The sale of the property is expected to close on March 31, 2008.

Any recovery for creditors and other stakeholders, includingshareholders, is uncertain and is highly dependent upon a number of factors, including the recovery from the sale of the company's factory and equipment in the People's Republic of China, potential claims from customers and suppliers and the outcome of the Scheme of Arrangement in Hong Kong.

Deloitte & Touche Inc., in its capacity as monitor of Ascalade, will continue to work with Ascalade on the restructuring or winding up of the company.

As reported in the Troubled company Reporter on March 4, 2008,Ascalade Communications intended to seek protection fromcreditors under the Companies' Creditors Arrangement Act with theBritish Columbia Supreme Court. Ascalade's board of directors hasdetermined that seeking creditor protection is in the interests ofthe company, its creditors, shareholders, employees, customers andother stakeholders.

The company related that these actions were necessary because ofthe company's inability to fund operations to meet customerdemand. This was a result of significant operational challengesdue to difficulty hiring and retaining workers, continued laborand material cost increases, sustained competitive price pressuresand foreign exchange variations impacting the business.

About Ascalade Communications Inc.

Based in Richmond, British Columbia, Ascalade Communications Inc.(TSE:ACG) -- http://www.ascalade.com/ -- is an innovative product company that designs, develops and manufactures digital wirelessand communication products. The company deliver products byoffering its partners and customers complete vertical integration,from product design and development to final production. Thecompany's products include digital cordless phones, Voice overInternet Protocol phones, digital wireless baby monitors anddigital wireless conference phones. Ascalade products have beendistributed in over 35 countries and under 80 regional brands. Ascalade also has facilities in Qingyuan, China, Hong Kong and asales office in Hertfordshire, United Kingdom.

ASCENDIA BRANDS: Joseph A. Falsetti Resigns as Executive Chairman-----------------------------------------------------------------Joseph A. Falsetti has resigned as executive chairman of Ascendia Brands Inc. and as a member of its board of directors, effective March 21, 2008.

Ascendia and Mr. Falsetti have entered into a Separation Agreement under which Mr. Falsettti agreed to the termination of his employment agreement entered into on Feb. 12, 2007, and forfeited rights to certain incentive stock options, in return for mutually agreed-upon severance payments.

Headquartered in Hamilton, New Jersey, Ascendia Brands Inc.-- http://www.ascendiabrands.com/-- is a leader in the value and premium value segments of the health and beauty care productssector. In November 2005, Ascendia expanded its range of productofferings through the acquisition of a series of brands, includingBaby Magic(R), Binaca(R), Mr. Bubble(R) and Ogilvie(R), and inFebruary 2007 it acquired the Calgon(TM)* and the healinggarden(R) brands. The company operates two manufacturingfacilities, in Binghamton, New York, and Toronto, Canada.

Senior Lenders Waive Default

As reported in the Troubled Company Reporter on Jan. 3, 2008,Ascendia Brands Inc. reached agreement with its senior lendersto restructure $160 million first and second lien debt facilities. Under the agreement, Ascendia's senior lenders will waive certainexisting covenant defaults and adjust financial covenant levelsthrough the end of Ascendia's fiscal year ending Feb. 28, 2009.

The TCR reported on Dec. 17, 2007 that Ascendia Brands notifiedits senior lenders that it is in default of certain covenantscontained in its first and second lien credit facilities and isunable to make certain representations and warranties deemed to bemade when drawings are made under its revolving credit facility.

BALLY TOTAL: Commences Cash Distribution to Former Stockholders---------------------------------------------------------------Bally Total Fitness Holding Corporation commenced the process tomake an initial cash distribution to former stockholders, in accordance with the terms of Bally's confirmed chapter 11 plan. The initial cash distribution is $.31 per share of Old Common Stock.

Approximately $3.5 million has been reserved by Bally's disbursingagent, pending disallowance of certain outstanding claims that were filed in Bally's chapter 11 case. These reserved funds may fund a second distribution to holders of Old Common Stock, but such a distribution is subject to satisfactory resolution of the outstanding claims.

Class A-1 has been paid in full and Fitch does not rate the $21.6 million class P.

Affirmations are due to the stable performance and minimal paydown of the transaction since the last Fitch rating action. As of the March 2008 distribution date, the pool has paid down 9.7% to $1.20 billion from $1.33 billion at issuance.

In total nine loans (9.4%) have defeased, including two (5.4%) of the top 10 (42.8%) loans. Currently 36% of the nondefeased loans are interest only or have interest-only periods. Scheduled nondefeased maturities in 2008 and 2009 are 4.5% and 0.7%, respectively. The majority of the balance of the nondefeased loans mature in 2013 (45.5%) and 2014 (26.3%). The pool's weighted average coupon mortgage rate is 5.6%.

Nine (4%) loans have been identified as Fitch loans of concern due to declining occupancy or debt service coverage ratios. Currently there are no delinquent or specially serviced loans.

Fitch maintains investment grade credit assessments on two loans in the trust: the Leo Burnett Building (10%) and the Hines Sumitomo Life Office Portfolio (8.7%) loans.

The Leo Burnett Building is a 1.1 million square foot class A office building located in Chicago, Illinois. Occupancy as of March 2008 was 100% compared to 98.2% at issuance.

The Hines Sumitomo Life Office Portfolio is secured by three central business district office buildings containing a total of 1.2 million square feet. Two of the office buildings are located in New York, New York, and one is located in Washington, DC. The whole loan consists of two senior pari passu notes and one junior note. Only the A2 pari passu note is held in the trust. As of September 2007, the overall occupancy has remained flat compared to 97.7% at issuance.

Nine loans (9.3%) mature in 2008 and 2009, of which three loans (4.1%) are defeased.

BELDEN & BLAKE: Posts $35.3 Million Net Loss in Year Ended Dec. 31------------------------------------------------------------------Belden & Blake Corp. reported a net loss $35.3 million on net operating revenues of $125.7 million for the year ended Dec. 31, 2007, compared with net income of $52.2 million on net operating revenues of $159.1 million for the year ended Dec. 31, 2006.

The decrease in net operating revenues was due to lower gas sales revenues of $32.8 million and lower gas gathering and marketing revenues of $1.0 million.

Derivative fair value gain/loss was a loss of $78.1 million in 2007 compared to a gain of $37.4 million in 2006. The derivative fair value gain/loss reflects the changes in fair value of certain derivative instruments that are not designated or do not qualify as cash flow hedges, the ineffective portion of crude oil swaps through Aug. 15, 2005, and the ineffective portion of natural gas swaps as a result of purchase accounting.

At Dec. 31, 2007, the company had aggregate long term debt of $286.4 million, compared with $279.9 million at Dec. 31, 2006.

Balance Sheet

At Dec. 31, 2007, the company's consolidated balance sheet showed$774.2 million in total assets, $672.0 million in total liabilities, and $102.2 million in total stockholders' equity.

The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with $52.9 million in total current assets available to pay $67.1 million in total current liabilities.

Belden & Blake Corporation -- http://www.beldenblake.com/-- is an independent energy company engaged in the exploitation, development, production, operation and acquisition of oil and natural gas properties. The company's operations are focused in the Appalachian Basin in Ohio, Pennsylvania and New York and in the Antrim Shale formation in the Michigan Basin.

BERNOULLI HIGH: Moody's Junks Ratings on Seven Classes of Notes---------------------------------------------------------------Moody's Investors Service downgraded ratings of eight classes of notes issued by Bernoulli High Grade CDO II, Ltd., and left on review for possible further downgrade the rating of one of these classes. The notes affected by this rating action are:

The rating downgrade actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence on March 4, 2008, as reported by the Trustee, of an event of default that occurs when the Sequential Pay Ratio is less than 95 per cent, as described in Section 5.1(i) of the Indenture dated Aug. 28, 2007.

Recent ratings downgrades on the underlying portfolio caused ratings-based haircuts to affect the calculation of overcollateralization. Thus, the Event of Default described in Section 5.1(i) of the Indenture occurred.

As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, holders of certain Notes may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes.

The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued following an event of default. Because of this uncertainty, the ratings assigned to the Class A-1B Notes remain on review for possible further action.

Bernoulli High Grade CDO II, Ltd. is a collateralized debt obligation backed primarily by a portfolio of RMBS securities and CDO securities.

BRASIL TELECOM: Moody's Reviews 'Ba1' Note Rating for Likely Lift-----------------------------------------------------------------Moody's placed on review for possible upgrade the Ba1 rating assigned to Brasil Telecom S.A.'s $200 million 9.375% structured Notes due 2014. The review is a result of the placement on review for possible upgrade of the Ba1 global scale senior unsecured rating of Brasil Telecom S.A.

The rating assigned to the structured notes is linked to the fundamental credit quality of Brasil Telecom S.A., as reflected by its global local currency rating. As a result of this linkage, any further change in that rating may also result in a change in the rating of the structured notes.

Brasil Telecom S.A., headquartered in Brasília, is an integrated telecommunications company operating in nine states in the southern, mid-western and northern regions of Brazil. In 2007 Brasil Telecom reported consolidated net revenues of BRL11,059 million or $5,671 million.

CALPINE CORP: Canadian Monitor Reports Updates on CCAA Proceedings------------------------------------------------------------------Ernst & Young, Inc., the monitor of the reorganization proceedings of Calpine Corporation's affiliates under the Canadian Companies' Creditors Arrangement Act, reports that Calpine Canada Energy Finance I ULC, on February 6, 2008, has completed its distribution and has fully repaid or reserved for all its third party creditors and all holders of the ULC1 Notes. ULC1 is currently seeking permission from the Honorable Madam Justice Romaine of the Court of Queen's Bench of Alberta to allow for the cancellation of the ULC1 Notes and the discharge and release of the ULC1 Indenture Trustee.

The Monitor further reports the total recoveries of the CCAA Applicants, related distributions and payments and the reserves for unresolved claims, totaled approximately $11,000,000,000, including $5,100,000,000 in recoveries from claims against the US Debtors. The CCAA Applicants distributed $3,500,000,000 to third party creditors, allowing each CCAA Applicant to fully repay all resolved third party claims.

The Monitor also relates that:

(a) $4,700,000,000 in claims were resolved between CCAA Applicants;

(b) $1,300,000,000 in distributions have been made in respect of claims owing to the US Debtors;

(c) approximately $83,700,000 as a full reserve for unresolved claims, which remain outstanding; and

(d) approximately $943,000,000 in capital has been returned to the US Debtors.

The Monitor further relates that the CCAA Applicants accumulated "other recoveries" totaling $980,000,000, with the significant recoveries comprising:

-- CCNG's collection of a $57,800,000 receivable that was factored with a third party;

-- CCRC's repatriation of $251,400,000 in funds from its foreign subsidiaries, referred to as the Saltend Proceeds;

-- CCPL's sale of its B Units of the Fund for net proceeds of approximately $97,700,000;

-- CCRC's sale of its ULC1 Notes for net proceeds of $403,700,000; and

-- CESCA's recoveries of $75,900,000 comprising the proceeds from the sale of natural gas under a call-on-production agreement as well as the collection of miscellaneous pre-filing accounts receivable.

The CCAA Applicants recovered $5,100,000,000, from the U.S. Debtors, comprising of:

-- $1,200,000,000, in claims owing by QCH were repaid on or about February 1, 2008, in conjunction with the implementation of the U.S. Plan of Reorganization;

-- $3,700,000,000 contribution from QCH to CCEL as part of the unwinding of the Hybrid Note Structure;

-- $231,700,000 in net proceeds were received by the CCAA Applicants in December 2007 relating to the sale of certain claims against the US Debtors.

The Monitor says that upon the distribution to creditors of ULC2 and CESCA, the amount required to be contributed by CCRC relating to the ULC2 Shortfall Claim and the CESCA Shortfall Claim totaled $251,600,000, representing a payment of $19,900,000 to ULC2, and $231,700,000 to CESCA.

The CCAA Applicants distributed $9,650,000,000, comprising of $3,500,000,000, with respect to resolved third party claims, $4,800,000,000, with respect to claims of other CCAA Applicants, and $1,300,000,000, in distributions in respect of claims of the U.S. Debtors.

The Monitor says $82,300,000, in claims remain unresolved, of which $66,600,000, relates to the deferral of the ULC1 guarantee fee owing to Calpine Corporation. The Monitor says each of the CCAA Applicant has withheld sufficient cash as a reserve against the unresolved claim amounts.

The CCAA Applicants paid $81,700,000, for the purchase of natural gas as required under the COP Agreements and payment of employee costs and general and administrative costs. About $76,000,000 was distributed by CCRC to the U.S. Debtors as part of the implementation of the Global Settlement Agreement. Professional fees and KERP payments total $40,300,000, including an accrual for professional fees to allow for the completion of these CCAA proceedings.

In conjunction with the implementation of the U.S. Plan, CCEL returned to QCH $943,400,000, in capital, comprising of shares Calpine Corporation common stock that CCEL received from QCH as part of the unwinding of the Hybrid Note Structure. CCEL has accrued an additional costs for future general and administrative costs to complete these CCAA proceedings.

Approximately $86,100,000, is estimated to be available for the U.S. Debtors, representing the remaining funds after each CCAA Applicant has fully reserved for all estimated remaining costs and unresolved claims, the Monitor says. Of the $86,100,000 remaining, $48,500,000 is comprised of cash and $37,600,000 of Calpine Shares.

Based in San Jose, California, Calpine Corporation (OTC PinkSheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, naturalgas-fired and geothermal power plants. Calpine owns, leases andoperates integrated systems of plants in 21 U.S. states and inthree Canadian provinces. Its customized products and servicesinclude wholesale and retail electricity, gas turbine componentsand services, energy management and a wide range of power plantengineering, construction and maintenance and operationalservices.

On June 20, 2007, the Debtors filed their Chapter 11 Plan andDisclosure Statement. On Aug. 27, 2007, the Debtors filed theirAmended Plan and Disclosure Statement. Calpine filed a SecondAmended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed aThird Amended Plan. On Sept. 25, 2007, the Court approved theadequacy of the Debtors' Disclosure Statement and entered awritten order on September 26. On Dec. 19, 2007, the Courtconfirmed the Debtors' Plan. The Amended Plan was deemedeffective as of January 31, 2008.

CALPINE CORP: Initial Market Capitalization Valued at $8.6 Billion------------------------------------------------------------------Calpine Corporation announced that its "Emergence Date Market Capitalization," calculated pursuant to its amended and restated certificate of incorporation, was approximately $8,600,000,000.

If, prior to February 1, 2013, Calpine's Market Capitalization declines 35 percent from the Emergence Date Market Capitalization and 25 percentage points of ownership change has occurred (for the purposes of Section 382 of the Internal Revenue Code), Calpine's Board shall meet to determine whether to impose tradingrestrictions in accordance with Article VII of the amended and restated certificate of incorporation.

The trading restrictions are designed to provide Calpine with the ability to preserve its net operating losses for tax purposes.

If Calpine's Board of Directors determines to impose such trading restrictions, Calpine is required pursuant to the amended and restated certificate of incorporation to promptly announce the imposition and terms of such trading restrictions.

Based in San Jose, California, Calpine Corporation (OTC PinkSheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, naturalgas-fired and geothermal power plants. Calpine owns, leases andoperates integrated systems of plants in 21 U.S. states and inthree Canadian provinces. Its customized products and servicesinclude wholesale and retail electricity, gas turbine componentsand services, energy management and a wide range of power plantengineering, construction and maintenance and operationalservices.

On June 20, 2007, the Debtors filed their Chapter 11 Plan andDisclosure Statement. On Aug. 27, 2007, the Debtors filed theirAmended Plan and Disclosure Statement. Calpine filed a SecondAmended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed aThird Amended Plan. On Sept. 25, 2007, the Court approved theadequacy of the Debtors' Disclosure Statement and entered awritten order on September 26. On Dec. 19, 2007, the Courtconfirmed the Debtors' Plan. The Amended Plan was deemedeffective as of January 31, 2008.

CALPINE CORP: Charles Clark Steps Down as Vice President--------------------------------------------------------Charles B. Clark Jr., Calpine Corporation's Senior Vice President and Chief Accounting Officer, will be leaving the company effective May 30, 2008, the company said in a press release. Calpine said it has initiated a search for Mr. Clark's replacement. Mr. Clark will be available to assist in the transition for a period of time after May 30, 2008.

"I join all of Calpine's employees in feeling pride in having participated in Calpine's reorganization and emergence from the two-year Chapter 11 process," Mr. Clark said. "We have also completed the centralization of the accounting function in Houston under a top-notch accounting leadership team. I am very optimistic about Calpine's future prospects, and after nine years as the Company's Chief Accounting Officer, I will be leaving with fond memories of my time at Calpine. I extend my best wishes to the reorganized Calpine and its fantastic employees.

"I want to thank Chuck for his many years of service to Calpine and for being an important member of our team. We will miss him and wish him the very best with his new endeavors," said Lisa Donahue, Executive Vice President and Chief Financial Officer for Calpine.

Bringing more than 20 years of domestic and international financial experience to Calpine, Mr. Clark joined the company in 1999. Prior to joining Calpine, Mr. Clark was the CFO of Hobbs Group, LLC. He holds a master's degree in business administration from Harvard Graduate School of Business Administration and a bachelor of science degree in mathematics from Duke University.

In a regulatory filing with the Securities and Exchange Commission, Calpine disclosed that Mr. Clark will be entitled to severance benefits under the Calpine Corporation Change in Control and Severance Benefits Plan, which was adopted effective January 31, 2008. He will also continue to be eligible to participate in the company's Emergence Incentive Plan.

Based in San Jose, California, Calpine Corporation (OTC PinkSheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, naturalgas-fired and geothermal power plants. Calpine owns, leases andoperates integrated systems of plants in 21 U.S. states and inthree Canadian provinces. Its customized products and servicesinclude wholesale and retail electricity, gas turbine componentsand services, energy management and a wide range of power plantengineering, construction and maintenance and operationalservices.

On June 20, 2007, the Debtors filed their Chapter 11 Plan andDisclosure Statement. On Aug. 27, 2007, the Debtors filed theirAmended Plan and Disclosure Statement. Calpine filed a SecondAmended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed aThird Amended Plan. On Sept. 25, 2007, the Court approved theadequacy of the Debtors' Disclosure Statement and entered awritten order on September 26. On Dec. 19, 2007, the Courtconfirmed the Debtors' Plan. The Amended Plan was deemedeffective as of January 31, 2008.

CARDIMA INC: To Restate Financial Statements Due to Errors----------------------------------------------------------Cardima Inc. said in a regulatory filing with the Securities and Exchange Commission dated March 26, 2008, that the company's Board of Directors have determined that its previously issued financial statements for the three-month period ended June 30, 2007, on Form 10-QSB as filed with the Commission on Aug. 30, 2007, should no longer be relied upon as a result of incorrect accounting for certain non-cash debt extinguishment.

The company said that this had the effect of understating the company's net loss attributable to common stockholders by approximately $21.7 million.

As originally filed, the company reported net income of $4,367,000 for the three months ended June 30, 2007, and a net loss of $2,657,000 for the six months ended June 30, 2007. As restated for the three and six months ended June 30, 2007, net loss were $17.4 million and $27.2 million, respectively.

The company's Board also has determined that its previously issued financial statements for the three-month periods ended March 31, 2006, June 30, 2006, Sept. 30, 2006, March 31, 2007, Sept. 30, 2007, and the year ended Dec. 31, 2006, should no longer be relied upon as a result of the company's determination that it had incorrectly accounted for the non-cash extinguishment of debt and commitment of unauthorized shares.

All incorrect accounting related to the restructuring of certain of the company's debt obligations. On June 7, 2007, Apix International Limited, a lender to the company, converted all of its debt and warrants into 88,000,000 shares of common stock of the company. As a result, $46,000,000 was credited to shareholder equity on the company's balance sheet. That amount included $35,000,000 for the conversion of the shares and $11,000,000 for the reversal of the authorized share liability at June 30, 2007.

The company said the misstatement had the effect of understating the company's net loss for the relevant reporting periods:

Headquartered in Fremont, California, Cardima Inc. (OTC BB:CRDM.OB) -- http://www.cardima.com/-- has developed the PATHFINDER(R) and REVELATION(R) Series of diagnostic catheters, the INTELLITEMP(R) Energy Management Device, and the Surgical Ablation System. The REVELATION(R) Series of ablation catheters with the INTELLITEMP(R) EP Energy Management Device was developed and marketed for the treatment of atrial fibrillation after receiving CE mark approval in Europe; it is not currently available in the U.S.

CATHOLIC CHURCH: Century Amends Objection to Disclosure Statement-----------------------------------------------------------------Century Indemnity Company, as successor to CCI Insurance Company and Insurance Company of North America, informs the U.S. Bankruptcy Court for the Southern District of Iowa that since the filing of its objection to the Diocese of Davenport's Disclosure Statement, Century Indemnity has become aware of the decision in Safeco Ins. Co. of America v. Farmland Indus., Inc. (In re Farmland Indus., Inc.), 296 B.R. 793 (8th Cir. BAP 2003).

In its initial objection filed with the Court, Century Indemnity relied on the Federal Mogul decision in its objection to the Disclosure Statement.

Mr. Updegraff explains that Federal Mogul involved a situation where there was no indemnity agreement and no guarantor or suretyship relation, unlike Century Indemnity's position in the bankruptcy case as an insurer to a non-debtor. In Farmland, however, there was an express suretyship relationship between a debtor and its surety bond issuer.

"While the BAP decision in Farmland is not controlling precedent, it is a significant jurisdictional ruling," Mr. Updegraff says. He points out that had Century Indemnity been aware of Farmland, the BAP decision would have been cited and dealt with it in the Objection.

CATHOLIC CHURCH: Fairbanks May Employ CSG as Special Counsel ------------------------------------------------------------Donald J. Kettler, sole Director of the Catholic Bishop ofNorthern Alaska, and bishop of the Diocese of Fairbanks, obtained authority from the U.S. Bankruptcy Court for the District ofAlaska to employ Cook, Schuhmann & Groseclose, Inc., nunc protunc to the bankruptcy filing, as special litigation counsel torepresent the Diocese's interests with respect to certainprepetition litigation matters.

As reported in the Troubled Company Reporter on March 11, 2008, Prior to the bankruptcy filing, CSG represented the Diocese inpending civil actions in various courts in the state of Alaska. Hence, Bishop Kettler says, CSG is intimately familiar with theissues in the Litigation Cases.

CATHOLIC CHURCH: Fairbanks Amends Motion to Hire Keegan Linscott----------------------------------------------------------------Donald J. Kettler, sole director of the Catholic Bishop of Northern Alaska, and bishop of the Diocese of Fairbanks, filed with the U.S. Bankruptcy Court for the District of Alaska an amended application to employ Keegan, Linscott and Kenon, P.C., as Fairbanks' accountants and financial consultants, nunc pro tunc to the bankruptcy filing.

Bishop Kettler relates that Keegan Linscott's retainer, which would have been applied to prepetition fees and costs, did not reach the firm prior to the bankruptcy filing due to certain bank errors during the transfer of the funds. He further relates that the $50,000 funds was received by Keegan Linscott's bank on February 29, 2008, but was returned to the Diocese's account, without consulting the firm, allegedly because the routing number was incorrect.

The Diocese says that the Court should consider the Retainer as a prepetition retainer because the transfer of funds was done prepetition, and intended as a prepetition retainer. Bishop Kettler notes that in the original employment application, the Diocese and Keegan Linscott operated under the assumption that the Retainer had actually been received prepetition.

By its amended application, the Diocese asks Judge MacDonald to:

-- approve Keegan Linscott's employment as of the bankruptcy filing;

-- recognize the Retainer as a prepetition retainer;

-- allow Keegan Linscott to apply the Retainer to amounts accrued prepetition; and

-- allow Keegan Linscott to retain the remaining Retainer to be used for postpetition fees.

* * *

The Court approved the Diocese's amended application. Judge MacDonald further held that Keegan Linscott may (i) apply the Retainer to any amounts accrued prepetition, and (ii) retain the Retainer to be applied against postpetition fees.

CATHOLIC CHURCH: Fairbanks May Employ Quarles & Brady as Counsel----------------------------------------------------------------Donald J. Kettler, sole director of the Catholic Bishop of Northern Alaska and bishop of the Diocese of Fairbanks, obtained permission from the United States Bankruptcy Court for the District of Alaska to employ Quarles & Brady LLP as the Diocese's general reorganization and restructuring counsel.

As reported in the Troubled Company Reporter on March 6, 2008, Bishop Kettler said Quarles & Brady has extensive experience inrepresenting distressed Catholic dioceses throughout the country,and in negotiating settlements of sexual abuse tort claims, andout-of-court and bankruptcy court supervised restructurings. Susan G. Boswell, Esq., and her team at Quarles & Brady alsorepresented the Diocese of Tucson and The Roman Catholic Bishopof San Diego in their reorganization cases.

CATHOLIC CHURCH: Spokane's Plan Trustee Wants Bond Amount Cut-------------------------------------------------------------Gloria Z. Nagler, Esq., Trustee for the Diocese of Spokane's Chapter 11 plan, asks the U.S. Bankruptcy Court for the Eastern District of Washington to reduce the amount of bond, under which she serves, pursuant to Article 6(a) of the Catholic Diocese of Spokane Plan Trust Agreement for Qualified Settlement Fund.

The bond is currently set at $30,000,000 by Article 6(a) of the Plan Trust Agreement, Ms. Nagler says.

Ms. Nagler informs the Court that in 2007, she paid to claimants, bankruptcy case professionals, and other administrative costs all but about $6,000,000 of the funds in the Plan Trust accounts. Therefore, she notes, there is no reason now to pay for a bond of $30,000,000.

The Diocese will likely pay the outstanding balance of $1,000,000, less some discount for early payment, sometime in the spring of 2008, Ms. Nagler relates. Therefore, she tells Judge Williams, the most that she will be holding "from this time forward" is something less than $7,000,000.

Mr. Nagler notes that she hopes to make another distribution to the Diocese's matrix claimants in the next few months, which will bring the total amount held in the Plan Trust even less.

Article 6(h) of the Plan Trust Agreement requires that any modifications to the provisions of the Plan Trust Agreement be made upon request to the Court. Ms. Nagler assures the Court that notice has been sent to appropriate parties-in-interest regarding her request.

Accordingly, Ms. Nagler asks the Court to allow the reduction of the requisite bond to $7,000,000. She also asks the Court to allow future bond reduction to the amount actually held in the Plan Trust accounts, and without further Court order.

Furthermore, S&P does not expect significant improvement during the near term, as general economic factors are expected to hurt CBRL and others in the restaurant industry. "Moreover," added Ms. Oberoi, "customers who are burdened by higher gas prices and problems in the housing market are trading down from casual- and family-dining concepts to quick-service restaurants, many of which have extensive value offerings.

CENTENNIAL COMMS: Feb. 29 Blanace Sheet Upside Down by $1.062 Bil.------------------------------------------------------------------Centennial Communications Corp. reported a balance sheet data for Feb. 29, 2008 with total assets of $1.340 billion, total liabilities of $2.402 billion resulting to a total stockholders' deficiency of $1.062 billion.

For the three months ended Feb. 29, 2008, the company generated revenues of $251.1 million from $229.1 million for the same quarter in 2007.

For the 2008 third quarter, the company's net income is at $5.4 million compared to the $1.3 million net loss of the same quarter in 2007.

The company reported income from continuing operations of $6.6 million for the fiscal third quarter of 2008 as compared to income from continuing operations of $0.3 million in the fiscal third quarter of 2007.

"In the U.S., we continue to invest heavily in training our front-line Associates to engender a competitive spirit that keeps everyone focused on the bottom line," Michael J. Small, Centennial's chief executive officer, said. "We've improved upon our long successful local market strategy by delighting customers at every touch-point with innovative new features, improving an already superior network and targeting our advertising within our footprint to showcase our strengths against the most relevant competitors."

"In Puerto Rico, we're capitalizing on our leading position to consistently grow customers, improve customer retention and sustain a robust ARPU," Mr. Small continued. "Our Puerto Rico wireless business grew cash flow 13 percent during the fiscal third quarter, our best effort in more than two years."

"We're also leveraging our assets to attack new revenue streams in the residential market, and are seeing meaningful growth from our cable partnerships," Mr. Small added.

The company ended the quarter with 1,086,300 total wireless subscribers, which compares to 1,034,200 for the year-ago quarter and 1,068,300 for the previous quarter ended Nov. 30, 2007. The company reported 474,500 total access lines and equivalents at the end of the fiscal third quarter, which compares to 397,800 for the year-ago quarter.

About Centennial Communications

Based in Wall, New Jersey, Centennial Communications Corp.(NASDAQ: CYCL) - http://www.centennialwireless.com/-- provides regional wireless and integrated communicationsservices in the United States and the Puerto Rico withapproximately 1.1 million wireless subscribers and 387,500access lines and equivalents. The US business owns and operateswireless networks in the Midwest and Southeast covering parts ofsix states. Centennial's Puerto Rico business owns and operateswireless networks in Puerto Rico and the U.S. Virgin Islands andprovides facilities-based integrated voice, data and Internetsolutions. Welsh, Carson, Anderson & Stowe and an affiliate ofthe Blackstone Group are controlling shareholders of Centennial.

CENTEX HOME: Fitch Chips Ratings on $582.9 Million Certificates---------------------------------------------------------------Fitch Ratings has taken rating actions on Centex Home Equity Loan Trust mortgage pass-through certificates. Affirmations total $540.7 million and downgrades total $582.9 million. Break Loss percentages and Loss Coverage Ratios for each class is included with the rating actions as:

The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness.

CHAMPION AIR: To Shut Down Operations by End of May---------------------------------------------------Champion Air will cease flight operations May 31, 2008 after being hit by increase in fuel prices and overall economic slowdown.

"This is a sad day for the entire Champion family," said Champion President and CEO Lee Steele. "The men and women of this airline have poured themselves into providing safe, reliable and pleasing service to millions of customers over our 11 years in business. Unfortunately, our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for our services. Those factors also have impeded our efforts to attract new capital and new investors. Accordingly, the management team and our board of directors have decided that the best course of action is to cease flying and to wind up our operations in a responsible, deliberate manner."

Mr. Steele noted that the run-up in fuel prices strongly impacted Champion's fleet of three-engine Boeing 727s and that both the overall economic slowdown and the tight credit markets had a strong, negative impact on the airline's business prospects and its efforts to attract investors. Compounding the challenges facing the airline was a growing trend in the marketplace away from charter carriers for certain types of flying.

"Champion really has experienced a 'perfect storm' that has simultaneously affected our cost structure, our ability to generate revenue and our ability to restructure ourselves," Mr. Steele said. "Any one of those factors would be difficult; collectively they are insurmountable . . . even with the tremendous employees we have and the best efforts of everyone involved.

"The people of this airline can take a very justifiable pride in what they have created," Mr. Steele continued. "This situation is in no way a reflection of their talents, their commitment or their passion for our customers."

Champion will fulfill all outstanding service commitments and will remain fully in compliance with all regulatory, operational and labor contract requirements. The company has adequate funds to continue operations and to settle all outstanding financial obligations.

The airline's current 550 employees will continue to receive their pay and benefits through May 31. Notification of the impending shutdown as mandated by the Worker Adjustment and Retraining Notification Act and any similar state and local regulations is underway.

CHAMPION ENTERPRISES: To Shut Down Plants in Silverton & LaGrange-----------------------------------------------------------------Champion Enterprises Inc. will close its manufacturing facility in Silverton, Oregon, and idle the last of four plants at its complex in LaGrange, Indiana, transferring the LaGrange production to the company's nearby facilities in Topeka, Indiana.

As a result of the closures, the company expects to incur pretax cash restructuring charges of approximately $2.1 million in the first quarter ending March 29, 2008.

In addition, the company is in the process of assessing the related pretax non-cash fixed asset impairment charges that it expects to record during the quarter which could $7.5 million.

"Our ongoing efforts to deliver strong segment operating margins in the face of challenging U.S. housing markets require that we continuously monitor the regional capacity utilization rates and profitability of our manufacturing footprint," William Griffiths, chairman, president and chief executive officer of Champion Enterprises Inc., stated. "As a result of lagging sales, we made the difficult decision to further consolidate our U.S. operations, bringing the total number of plants idled or closed sincemid-2006 to 10."

About Champion Enterprises Inc.

Based in Auburn Hills, Michigan, Champion Enterprises Inc. (NYSE:CHB) -- http://www.championhomes.com/-- operates 31 manufacturing facilities in North America and the United Kingdom working withindependent retailers, builders and developers. The Championfamily of builders produces manufactured and modular homes, aswell as modular buildings for government and commercialapplications.

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As reported in the Troubled Company Reporter on Dec. 12, 2007;Standard & Poor's Ratings Services raised its ratings on ChampionEnterprises Inc.'s senior notes due 2009 and on Champion HomeBuilders Co.'s senior secured credit facility to 'B+' from 'B'.At the same time, S&P upgraded the recovery ratings on the seniornotes and the credit facility to '3' from '5'. Concurrently, S&Paffirmed the 'B+' corporate credit ratings. The outlook for bothentities is stable.

CHARTER COMM: Unit Completes $546MM Sale of 10.875% 2nd Lien Notes ------------------------------------------------------------------Charter Communications Inc.'s subsidiary, Charter Communications Operating LLC, closed on the sale of $546 million principal amount of 10.875% 2nd lien notes due 2014 in a private transaction. At the closing, the amount of the Notes was upsized from the amount previously disclosed.

As reported in the Troubled Company Reporter on March 14, 2008,Charter Communications' subsidiary, Charter CommunicationsOperating LLC agreed to issue $520 million principal amount of10.875% 2nd lien notes due 2014, which are to be guaranteed by CCOHoldings LLC and certain subsidiaries of Charter Operating, in aprivate transaction. The purchase price of the notes will be approximately 96.1% of the principal amount.

The proceeds from the sale of the Notes were used to repay, but not permanently reduce, the outstanding debt balances under the existing revolving credit facility of Charter Operating.

As reported in the Troubled Company Reporter on March 14, 2008,Moody's Investors Service affirmed these ratings for CharterCommunications Inc.: (i) corporate family rating: Caa1; (ii)probability-of-default rating: Caa2; and (iii) senior unsecurednotes: Ca (LGD5 -- 87%).

CHARYS HOLDING: Wants Milbank Tweed as Bankruptcy Counsel---------------------------------------------------------Chary's Holding Company Inc. and its debtor affiliate ask the U.S. Bankruptcy Court for the District of Delaware to retain Milbank, Tweed, Hadley & McCloy LLP as its Bankruptcy Counsel.

The firm will assist the Debtor and its debtor-affiliate in legal services that will enable the company to perform its duties faithfully and to carry out a comprehensive chapter 11 plan.

Milbank will be compensated at its standard hourly rates, which are based on the professionals' level of experience. These hourly rates are subject to periodic firm-wide adjustments in the ordinary course of the firm's business.

Matthew S. Barr, a partner in Milbank's Financial Restructuring Group, assures the court that Milbank does not have any connection with or represent any adverse interest to the Debtors, their creditors or any other party in interest, pursuant to Bankruptcy Rule 2014(a).

CITADEL BROADCASTING: Has $848MM Net Loss in 4th Qtr. Ended 2007----------------------------------------------------------------Citadel Broadcasting Corporation posted net loss pf $848.0 million for the quarter ended Dec. 31, 2007, as compared to a net loss of $1.1 million for the same period in 2006. Included in net loss for the quarter ended Dec. 31, 2007 was approximately $857.0 million of non-cash asset impairment and disposal charges.

The company's net revenues for the fourth quarter of 2007 were $245.5 million as compared to $114.0 million for the fourth quarter of 2006. T he increase in revenues was a result of the acquisition of ABC Radio on June 12, 2007.

On a pro forma basis, net revenues in the fourth quarter of 2006 were $258.5 million as compared to $245.3 million for the quarter ended Dec. 31, 2007. Pro forma revenues for 2007 and 2006 have been adjusted for the results of ABC Radio as if it had been acquired at the beginning of 2006 and any significant station dispositions. This decrease in pro forma revenues of $13.2 million is primarily a result of a $13.1 million decline in revenue from our Radio Markets, partially offset by an increase in revenue at the Radio Network of $0.6 million.

The decline in net revenues at the Radio Markets was primarily attributable to lower revenues in our San Francisco, CA; Washington, DC; Chicago, IL; Atlanta, GA; New York, NY; Birmingham, AL; Dallas, TX and Los Angeles, CA radio stations.

Operating loss for the fourth quarter of 2007 was $1,043 million as compared to operating income of $10.8 million in the corresponding 2006 period, a decrease of $1,054 million. The decrease in operating income for the three months ended Dec. 31, 2007 as compared to the three months ended Dec. 31, 2006 is primarily the result of an increase in asset impairment charges of approximately $1,076 million. The asset impairment charge is related to a continued deterioration in the radio marketplace and to a decline in the Company's stock price during the three months ended Dec. 31, 2007.

Operating income was also impacted by an increase in depreciation and amortization of $9.3 million and an increase of $2.2 million in corporate general and administrative costs, offset by the operations of the ABC Radio stations and Network acquired on June 12, 2007. The increases in depreciation and amortization and corporate general and administrative expenses are primarily attributable to the ABC Radio acquisition.

Segment operating income was $86.4 million for the fourth quarter of 2007, compared to $49.0 million for the fourth quarter of 2006, an increase of $37.4 million. This increase reflects the operations of ABC Radio, which was acquired on June 12, 2007. On a pro forma basis, segment operating income adjusted for the results of ABC Radio, as if it had been acquired at the beginning of 2006, and any significant station dispositions was $103.2 million in the fourth quarter of 2006 compared to $86.1 million for the quarter ended Dec. 31, 2007. This decrease of $17.1 million is a result of a $16.2 million decline in segment operating income from our Radio Markets and a $0.9 million decline at the Radio Network.

The decline in segment operating income at the Radio Markets was primarily attributable to our New York, NY; San Francisco, CA; Chicago, IL; Atlanta, GA; Los Angeles, CA; Washington, D.C.; Birmingham, AL and Dallas, TX radio stations.

Net interest expense increased to $37.4 million for the quarter ended December 31, 2007 from $8.0 million for the quarter ended Dec. 31, 2006, an increase of $29.4 million. The increase in net interest expense was primarily the result of the interest incurred on the increased borrowings under the Company's new senior credit and term loan facility as a result of the merger with ABC Radio.

Income tax benefit for the quarter ended Dec. 31, 2007 was $234.9 million, compared to income tax expense of $2.9 million for the quarter ended Dec. 31, 2006. The income tax benefit for the quarter ended Dec. 31, 2007 is primarily related to the $1,103.1 million asset impairment and disposal charges, which resulted in an income tax benefit of approximately $246.1 million, partially offset by the tax expense on pre-tax income excluding impairment loss.

Free cash flow was $34.9 million for the three months ended December 31, 2007, compared to $29.4 million for the three months ended Dec. 31, 2006, an increase of $5.5 million. The increase in free cash flow is a result of the acquired ABC Radio business, offset in part by an increase in interest costs and corporate general and administrative expenses. For the three months ended Dec. 31, 2007, the basic weighted average common shares outstanding was approximately 261.7 million as compared to111.2 million for the three months ended December 31, 2006.

Farid Suleman, Chairman and Chief Executive Officer of Citadel Broadcasting Corporation, commented: "The fourth quarter and the year ended Dec. 31, 2007 was difficult for the broadcasting industry and the Company. The performance of the larger market radio stations acquired in the ABC Merger was particularly disappointing. Whereas the Company continues to believe that the long-term prospects from these stations will be positive, the Company in the interim is completing a major restructuring of these stations to both improve short-term profitability as well as position them for future growth. The Company is however pleased with the potential growth and profitability of the ABC Network. The Company's plan for the coming year is to focus on immediately improving the profitability of the ABC Radio stations as well as use the Company's considerable free cash flow to pay down debt."

About Citadel Broadcasting

Headquartered in Las Vegas, Nevada, Citadel Broadcasting Corp.(NYSE: CDL) -- http://www.citadelbroadcasting.com/-- is a radio broadcaster focused primarily on acquiring, developing andoperating radio stations throughout the United States. Citadelis comprised of 169 FM and 61 AM radio stations, in addition tothe ABC Radio Network business.

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As reported in the Troubled Company Reporter on Feb. 19, 2008,Standard & Poor's Rating Services said that the announcement byCitadel Broadcasting Corp. (B+/Stable/--) of its settlement oflitigation with certain subordinated note holders has no immediateeffect on ratings.

As reported in the Troubled Company Reporter on March 31, 2008,a full trial on a temporary restraining order issued by a Texascourt to force financiers of the proposed acquisition of ClearChannel to honor a financing deal is set April 8, 2008.

The TCR reported on March 27, 2008, Bain and Thomas H. Lee, which have agreed to buy Clear Channel Communications Inc., sued the group that promised to finance the $19 billion acquisition, to compel them to honor the agreement. The private equity firms filed complaints in New York state court in Manhattan and in Bexar County, Texas. The firms alleged the backers breached a contract entered in May to fund the deal. Clear Channel joined the suit in Texas.

The New York case wants a judge to order the banks to provide the promised loans. In Texas, Clear Channel asked for an order banning the banks from interfering with the merger agreement and sought more than $26 billion in damages.

The main New York case on the Clear Channel buyout is BT TripleCrown Merger Co. v. Citigroup, 08-600899, New York State SupremeCourt, County of New York (Manhattan). The Texas case is ClearChannel Communications Inc. and CC Media Holdings Inc. v.Citigroup, 2008-CI-04864, Texas District Court, Bexar County,Texas.

As previously reported in the TCR, the privatization of Clear Channel appeared in danger of collapsing after the backers reportedly failed to reach agreement on the final financing of the transaction. Clear Channel had anticipated closing the merger agreement by March 31, 2008. The company's shareholders approved the adoption of the merger agreement, as amended, in which Clear Channel would be acquired by CC Media Holdings Inc., a corporation formed by private-equity funds co-sponsored by Lee Partners and Bain Capital. The deal includes $19.4 billion of equity and $7.7 billion of debt.

Talks between the private equity firms and their banks reportedlybecame mired over details of the credit agreement.

The main dispute centers on the syndicate's demand that the private-equity firms replace a long-term financing package of at least six years in the original agreement with a short-term, three-year bridge-financing agreement; and a condition that the buyers not use a revolving credit facility or Clear Channel's cash flow to pay down about $3.8 billion in short-term debt securities.

Based in San Antonio, Texas, Clear Channel Communications Inc.(NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home"entertainment and information services for local communities andpremiere opportunities for advertisers. The company'sbusinesses include radio, television and outdoor displays. OutsideU.S., the company operates in 11 countries -- Norway,Denmark, the United Kingdom, Singapore, China, the CzechRepublic, Switzerland, the Netherlands, Australia, Mexico andNew Zealand. As of Dec. 31, 2007, it owned 717 core radiostations, 288 non-core radio stations which are being marketed forsale and a leading national radio network operating in the UnitedStates.

* * *

As reported in the Troubled Company Reporter on March 28, 2008, Standard & Poor's Ratings Services said its ratings on ClearChannel Communications Inc., including the 'B+' corporate creditrating, remain on CreditWatch with negative implications.

Fitch Ratings stated that in line with previous guidance, ClearChannel Communications' 'BB-' Issuer Default Rating and Senior Unsecured Ratings would remain in place if the going-private transaction is not completed.

Moody's stated that assuming the transaction is completed as currently contemplated, Clear Channel will likely be assigned a Corporate Family Rating of B2 and the rating on the existing senior notes is likely to be notched down to Caa1 based on their expected subordination to the new senior secured debt facilities and the new senior notes.

Moody's explained that this rating action reflects deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of corporate bonds.

COMSTOCK HOMEBUILDING: Incurs $87.5 Mil. Net Loss for Fiscal 2007-----------------------------------------------------------------Comstock Homebuilding Companies Inc., for the twelve months ended Dec. 31, 2007, reported a net loss of $87.5 million on total revenue of $266.2 million as compared to a net loss of $39.8 million on revenue of $245.9 million for the twelve months ended Dec. 31, 2006.

In connection with these results the company stated that it had elected to record non-cash impairment and write-off charges of $78.3 million after tax based on a 39% tax rate, for the twelve months ended Dec. 31, 2007 as compared to charges of $57.4 million after tax based on a 39% tax rate, for the twelve months ended Dec. 31, 2006.

Exclusive of impairment and write-off charges the company posted an operating loss of $13.8 million for the twelve months ended Dec. 31, 2007 as compared to an operating loss of $8.3 million for the twelve months ended Dec. 31, 2006.

In addition, at Dec. 31, 2007 the company had recorded a $29.2 million valuation allowance against its deferred tax asset, an increase of $28.7 million as compared to Dec. 31, 2006. This increase in the company's deferred tax asset valuation allowance represented, on a pro-forma basis.

The company noted that during the twelve months ended Dec. 31, 2007 it reduced its debt by $124.2 million to $171.2 million as compared to $295.4 million at Dec. 31, 2006. The company's net debt-to-cap ratio at Dec. 31, 2007 was 75.5% as compared to 65.4% at Dec. 31, 2006. The company indicated that it had received all necessary waivers or forbearances from its lenders with respect to its Dec. 31, 2007 loan covenants.

As previously reported, on March 14, 2008 the company closed on a new $40.0 million revolving loan facility with KeyBank National Association. The proceeds from the new loan were used to refinance the company's Eclipse at Potomac Yard and Towns at Station View projects, provide financing for the restructure of the company's $30.0 million senior unsecured notes; pay fees and expenses associated with the new loan and provide working capital to the company.

In connection with the closing of the new loan with KeyBank, and as previously disclosed, the company executed on its option to restructure its $30.0 million senior unsecured notes. Under the terms of the restructuring, the company made a $6.0 million payment to the noteholder, entered into an amended and restated indenture for $9.0 million and issued the noteholder a warrant to purchase 1.5 million shares of the company's Class A common stock at a price of $0.70 per share. In exchange, the noteholder reduced the outstanding amount due under the notes by an additional $15.0 million.

Company Gets $13MM Tax Refund

The company also announced that in February 2008, based on its taxable losses for 2007, it had filed for a $13.9 million refund of federal and state taxes paid in connection with the company's 2005 fiscal year. The refunds were received in March 2008.

"Last year was a difficult year for our company and the home building industry by any measure," Christopher Clemente, chairman and chief executive officer, said. "However, we are confident that the actions we took during 2007 improve our outlook for future periods."

"We reduced debt by nearly one third while obtaining meaningful concessions from most of our lenders, we significantly reduced operating expenses and production costs, we enhanced liquidity by maximizing our tax refund, we reduced the burden of debt service by temporarily repositioning several projects as rental properties and selling certain other assets, and accelerated recognition of future period expenses where practical," Mr. Clemente added. "We also negotiated a $15 million discount to our $30 million senior unsecured notes, revalued the assets we continue to hold through the recognition of impairments based on a 17% discount model and aggressively sold inventory of speculative units."

On Oct. 25, 2007, the company entered into loan modificationagreements which extended maturities and provided for aforbearance agreement with respect to all financial covenants. The forbearance runs until March 31, 2008. As of Sept. 30, 2007,the company had $11.1 million outstanding to M&T Bank, and is notin compliance with the tangible net worth covenant.

COUNTRYWIDE FINANCIAL: Feds to Study Benefits of BofA Acquisition-----------------------------------------------------------------The U.S. Federal Reserve will hold hearings on the proposed $4 billion acquisition of Countrywide Financial Corp. by Bank of America Corp., various reports say.

According to the Chicago Tribune, the Federal Reserve's aim of holding the hearings is to determine whether or not the purchase will "benefit the public". The Fed will schedule the hearings on April 22 at the Federal Reserve Bank of Chicago, in Illinois, as well as in Los Angeles, California, the Tribune reports.

The Tribune notes that the consumer public sees these hearings as an opportunity to goad Bank of America to be more involved in helping distressed homeowners.

Early this year, Countrywide signed a definitive agreement to sellits business to Bank of America in an all-stock transaction worthapproximately $4 billion. Under the terms of the agreement,shareholders of Countrywide would receive 0.1822 of a share ofBank of America stock in exchange for each share of Countrywide. The purchase is expected to close in the third quarter and to beneutral to Bank of America earnings per share in 2008 andaccretive in 2009, excluding merger and restructuring costs.

As reported in the Troubled Company Reporter on March 12, 2008, the U.S. Federal Bureau of Investigation is also fielding evidence from its investigation of Countrywide Financial Corp., whichpotentially exposes the company's slipshod and dubious lendingpractices.

According to WSJ, the FBI discovered that many loan documents bear incorrect and faulty information on the mortgage clients the mortgage lender was servicing. The FBI is also mulling over the company's practice of originating and selling home loans to people who have questionable credit histories.

About Countrywide Financial

Based in Calabasas, California, Countrywide Financial Corporation(NYSE: CFC) -- http://www.countrywide.com/-- is a diversified financial services provider and a member of the S&P 500, Forbes2000 and Fortune 500. Through its family of companies,Countrywide originates, purchases, securitizes, sells, andservices residential and commercial loans; provides loan closingservices such as credit reports, appraisals and flooddeterminations; offers banking services which include depositoryand home loan products; conducts fixed income securitiesunderwriting and trading activities; provides property, life andcasualty insurance; and manages a captive mortgage reinsurancecompany.

* * *

As reported in the Troubled Company Reporter on Jan. 15, 2008,Moody's placed the ratings of Countrywide Financial Corporationand its subsidiaries under review for upgrade. CFC andCountrywide Home Loans senior debt is rated Baa3 and short-termdebt is rated Prime-3. Countrywide Bank FSB's bank financialstrength rating is C-, deposits are rated Baa1 and short-term debtPrime-2. All long and short-term ratings are placed under reviewfor possible upgrade.

Fitch does not rate the $15.5 million class P. Class A-1 has paid in full.

The upgrades reflect the increased credit enhancement levels due to principal paydown of 5.9% and defeasance of seven loans (6%) since Fitch's last rating action. As of the March 2008 distribution date, the pool's aggregate principal balance has decreased 11.1% to $1.12 billion from $1.26 billion at issuance. Eighteen loans have defeased, including the 4th largest loan in the transaction (4.2%).

Fitch has identified fourteen loans as Fitch loans of concern (9.2%) due to declining performance. The largest Fitch loan of concern (1.3%), which is in special servicing, is secured by a 438 unit multifamily property located in Houston, Texas. The loan was transferred to the special servicer due to monetary default. The special servicer had started foreclosure proceeding and the borrower, controlled by MBS Cos., subsequently filed for bankruptcy. The borrower has submitted reorganization plan which is under review for approval.

The second largest Fitch loan of concern (1.4%) is secured by a 173 unit multifamily property in Baltimore, Maryland. The servicer reported Debt Service Coverage Ratio as of June 30, 2007 was 0.51 times with occupancy at 99%, compared to DSCR of 1.29x with occupancy at 92% at issuance.

The Mall at Fairfield Commons loan (7.2%) is secured by 856,879 square foot of a 1,046,726 sf regional mall in Beavercreek, Ohio. As of Year end 2007, the occupancy remained stable at 99.4% since issuance. The loan is scheduled to mature in November 2014.

The Mayfair Mall & Office Complex loan (6.3%) is secured by 1,277,483 sf of a 1,488,197 sf commercial complex which is comprised of a regional mall and four office buildings in Wauwatosa, Wisconsin. Occupancy as of September 30, 2007 remains strong at 92%. The loan is scheduled to mature in July 2008.

The Stanford Shopping Mall loan (6.3%) is secured by 1,387,351 sf regional mall in Palo Alto, California. Occupancy as of October 30, 2007 increased to 99% from 96% at issuance. The loan is schedule to mature in September 2008.

The Paramount Plaza loan (3.6%) is secured by two 20-story office buildings totaling 911,900 sf located in Los Angeles, California. Occupancy as of September 30, 2007 increased to 90% from 84% at issuance. The loan is schedule to mature in September 2013.

Ten loans (17.7%) are scheduled to mature in 2008, including nine non-defeased loans (17.6%). The interest rate on the non defeased loans ranges from 3.108% to 7.1% with weighted average coupon at 3.65%. Sales for the two maturing retail properties have increased since issuance.

CROSSWINDS AT LONE: U.S. Trustee Appoints Three-Member Committee----------------------------------------------------------------The United States Trustee for Region 6 appointed three creditors to serve on an Official Committee of Unsecured Creditors in Cornerstone Ministries Investments Inc.'s bankruptcy case.

Official creditors' committees have the right to employ legaland accounting professionals and financial advisors, at theDebtors' expense. They may investigate the Debtors' business andfinancial affairs. Importantly, official committees serve asfiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding.

Headquartered in Novi, Michigan, Crosswinds at Lone Star Ranch1000, Ltd., owns and develops real estate. The company filedfor Chapter 11 protection on February 4, 2008. Frank J. Wright,Esq., at Wright, Ginsberg & Brusilow P.C., represents the Debtorin its restructuring efforts. No Official Committee of UnsecuredCreditors has been appointed in this case to date. When theDebtor file for protection against it creditors, it list totalasset of $115,000,000 and total debts of $79,100,000.

CROSSWINDS AT LONE: Files Schedules of Assets and Liabilities-------------------------------------------------------------Crosswinds at Lone Star Ranch 1000, Ltd. delivered to the United States Bankruptcy Court for the Eastern District of Texas itsschedules of assets and liabilities disclosing:

Headquartered in Novi, Michigan, Crosswinds at Lone Star Ranch1000, Ltd., owns and develops real estate. The company filedfor Chapter 11 protection on February 4, 2008. Frank J. Wright,Esq., at Wright, Ginsberg & Brusilow P.C., represents the Debtorin its restructuring efforts. No Official Committee of UnsecuredCreditors has been appointed in this case to date. When theDebtor file for protection against it creditors, it list totalasset of $115,000,000 and total debts of $79,100,000.

CSFB HOME: Fitch Junks Ratings on 10 Certificate Classes--------------------------------------------------------Fitch Ratings has taken rating actions on CSFB Home Equity pass-through certificates. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are removed. Affirmations total $383.1 million and downgrades total $277.9 million. Additionally, $72.2 million was placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class is included with the rating actions as:

The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness.

CVR ENERGY: Posts $57 Million Net Loss in Year Ended December 31----------------------------------------------------------------CVR Energy Inc. released financial results for fourth quarter and year ended Dec. 31, 2007.

The company reported fourth quarter 2007 net loss of $15.9 million and net loss of $56.8 million for the full year ended Dec. 31, 2007. Net income in 2006 was $20.8 million in the fourth quarter and $191.6 million for the full year.

CVR Energy 2007 fourth quarter results reflect the impact of non-cash share-based compensation of pretax $32.2 million, a one-time pretax expense of $10.0 million arising from the termination of management agreements in conjunction with the company's initial public offering, and $7.2 million in net flood-related expenses.

Full year comparisons in 2007 were affected by a planned major turnaround and expansion at the refinery, well as significant downtime and costs associated with the flood.

"CVR Energy's operating income provides the best measure of ourbusiness this year because of the assortment of one-time and non-cash items affecting our net income," Jack Lipinski, chief executive officer, said. "Our operating successes continue to provide a solid foundation on which to grow our business."

"CVR Energy experienced a remarkable 2007," Mr. Lipinski said. "We successfully executed a major turnaround and capital expansion program at our Coffeyville, Kansas, refinery early in the year; rapidly recovered from a flood during the summer that affected both our petroleum and nitrogen fertilizer businesses; and then executed a successful initial public offering of CVR Energy on the New York Stock Exchange in the fall."

"This truly was a transitional year," he added. "We emerge from 2007 an even stronger company focused on finding ways to create value for our shareholders."

At Dec. 31, 2007, the company's balance sheet showed total assets of $1.856 billion, total liabilities of $1.412 billion and total members' equity of $443.515 million.

About CVR Energy

Headquartered in Sugar Land, Texas, CVR Energy Inc. --http://www.cvrenergy.com/-- is an independent refiner and marketer of high value transportation fuels and, through a limitedpartnership, a producer of ammonia and urea ammonia nitratefertilizers. CVR Energy's petroleum business includes a 113,500barrel per day, complex, full-coking sour crude refinery inCoffeyville, Kansas. In addition, CVR Energy's supportingbusinesses include a crude oil gathering system serving centralKansas, northern Oklahoma and southwest Nebraska; storage andterminal facilities for asphalt and refined fuels in Phillipsburg,Kansas; and a rack marketing division supplying product tocustomers through tanker trucks and at throughput terminals.

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As reported in the Troubled Company Reporter on Dec. 7, 2007, Moody's Investors Service upgraded CVR Energy Inc.'s corporatefamily rating from Caa1 to B2, senior first secured debt ratingsfrom Caa1 (LGD 3; 31%) to B2 (LGD 3; 31%), probability of defaultrating from Caa2 to B3, and assigned a stable outlook.

CWABS: Fitch Downgrades Ratings on $158.2 Million Certificates--------------------------------------------------------------Fitch Ratings has taken rating actions on Countrywide mortgage pass-through certificates. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are removed from Rating Watch Negative. Affirmations total $460.9 million and downgrades total $158.2 million. Additionally, $63.0 million was placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as:

The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and 2005 with regard to continued poor loan performance and home price weakness.

DELPHI CORP: Can Continue Implementing Employee Compensation Plan-----------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New York authorizes Delphi Corp. and its debtor-affiliates to continue implementing its Annual Incentive Plan from Jan. 1, 2008, through June 30, 2008.

Pursuant to the AIP, Delphi executives will receive between $21,200,000 and $39,100,000 in bonuses depending on Delphi's financial performance.

If the Debtors do not emerge from Chapter 11 on or beforeAug. 15, 2008, the Official Committee of Unsecured Creditors may review and raise objections to EBITDAR performance adjustments related to the Debtors' agreements with their labor unions and General Motors Corp., the timing of the Debtors' emergence from Chapter 11, and other adjustments. If the Debtors are unable to resolve the Creditors Committee's objections, the Creditors Committee may adjust by up to $150,000,000 the Debtors' EBITDAR performance for purposes of the AIP.

Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systemsand modules, and other electronic technology. The company'stechnology and products are present in more than 75 millionvehicles on the road worldwide. Delphi has regional headquartersin Japan, Brazil and France.

The Court approved Delphi's First Amended Joint DisclosureStatement and related solicitation procedures for the solicitationof votes on the First Amended Plan on Dec. 20, 2007. The Courtconfirmed the Debtors' First Amended Plan on Jan. 25, 2008.

As reported in the Troubled Company Reporter on March 28, 2008,Moody's Investors Service raised the rating on Delphi Corp.'s revised second lien term loan to (P)B2 from (P)B3 and affirmed the company's Corporate Family Rating and Probability of Default Ratings of (P)B2, Speculative Grade Liquidity rating of SGL-2, first lien term loan rating of (P)Ba2, and stable outlook. The revision to the rating on the second lien facility follows a change in the composition of the term loans from the structureMoody's rated on March 14, 2008.

As reported in the Troubled Company Reporter on March 17, 2008,Standard & Poor's Ratings Services still expects to assign a 'B'corporate credit rating to Delphi Corp. if the company emergesfrom bankruptcy in early April.

S&P has revised its expected issue-level ratings because changes to the structure of the proposed financings have affected relative recovery prospects among the various term loans. S&P's expected ratings are:

a) The $1.7 billion "first out" first-lien term loan B-1 is expected to be rated 'BB-' (two notches higher than the expected corporate credit rating on Delphi), with a '1' recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of payment default.

b) The $2 billion "second out" first-lien term loan B-2 is expected to be rated 'B' (equal to the corporate credit rating), with a '4' recovery rating, indicating the expectation of average (30%-50%) recovery in the event of payment default.

c) The $825 million second-lien term loan is expected to be rated 'B-' (one notch lower than the corporate credit rating), with a '5' recovery rating, indicating the expectation of modest (10%- 30%) recovery in the event of payment default.

DELPHI CORP: Wants to Extend Indemnification Agreement with GM--------------------------------------------------------------Delphi Corp. and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to extend the indemnification agreement between Delphi Corp. and General Motors Corp. with respect to the UAW Benefit Guarantee, dated as of Dec. 22, 1999, for an additional time period of up to 15 days, until April 15, 2008, if GM extends its obligations under the UAW Benefit Guarantee by the same period of time.

As reported in the Troubled Company Reporter on June 26, 2007, the United Automobile, Aerospace and Agricultural Implement Workers of America, Delphi, and GM entered into a memorandum of understanding. Among other things, the UAW-Delphi-GM Memorandum of Understanding was designed to enable Delphi's continued transformation to more competitive wage and benefit levels and to address divestiture, work rules, and staffing level issues in the Debtors' workforce.

Pursuant to the UAW-Delphi-GM Memorandum of Understanding, the UAW, Delphi, and GM also agreed to the "Term SheetDelphi Pension Freeze and Cessation of OPEB, and GM Consensual Triggering of Benefit Guarantee," which facilitates the freezing of Delphi's pension plan and the assumption of billions of dollars of OPEB liabilities by GM, thereby dramatically reducing Delphi's ongoing benefit costs. The UAW-Delphi-GM Memorandum of Understanding was ratified by the UAW membership on June 28, 2007, and approved by the Court on July 19, 2007.

The UAW-Delphi-GM Memorandum of Understanding extended the time period for certain of GM's obligations under the Sept. 30, 1999 Benefit Guarantee Agreement between GM and the UAW to March 31, 2008, if Delphi commenced solicitation of acceptances of a plan of reorganization prior to Dec. 31, 2007. Delphi and GM also agreed that the eighth anniversary date reference in the Indemnification Agreement would be extended until March 31, 2008, if Delphi commenced solicitation of acceptances of a plan of reorganization prior to Dec. 31. The Debtors' Chapter 11 Plan, however, was not confirmed and substantially consummated byDec. 31. Nonetheless, the UAW-Delphi-GM Memorandum of Understanding additionally provided that the March 31, 2008 UAW Benefit Guarantee extension date would be extended to "such later date as Delphi and GM will agree to extend the Indemnification Agreement expiration."

Under the provisions of the Memorandum of Understanding approved by the Court on July 19, 2007, the Debtors believe that they already have authority to extend the Indemnification Agreement for additional time periods. Out of an abundance of caution, however, and as a result of GM's unique role in the Chapter 11 cases, the Debtors seek the Court's authority to extend the Indemnification Agreement.

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, asserts that an extension will allow Delphi's indemnification obligations under the Indemnity Agreement to continue uninterrupted until it has emerged from Chapter 11. If the Plan is not consummated, the extension will also provide additional time for the Debtors to consider whether additional extensions are appropriate or viable.

The extension, in the exercise of the Debtors' business judgment, is in the best interests of the Debtors' estates, creditors, and other parties-in-interest, including Delphi's employees, Mr. Butler asserts.

Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systemsand modules, and other electronic technology. The company'stechnology and products are present in more than 75 millionvehicles on the road worldwide. Delphi has regional headquartersin Japan, Brazil and France.

The Court approved Delphi's First Amended Joint DisclosureStatement and related solicitation procedures for the solicitationof votes on the First Amended Plan on Dec. 20, 2007. The Courtconfirmed the Debtors' First Amended Plan on Jan. 25, 2008.

As reported in the Troubled Company Reporter on March 28, 2008,Moody's Investors Service raised the rating on Delphi Corp.'s revised second lien term loan to (P)B2 from (P)B3 and affirmed the company's Corporate Family Rating and Probability of Default Ratings of (P)B2, Speculative Grade Liquidity rating of SGL-2, first lien term loan rating of (P)Ba2, and stable outlook. The revision to the rating on the second lien facility follows a change in the composition of the term loans from the structureMoody's rated on March 14, 2008.

As reported in the Troubled Company Reporter on March 17, 2008,Standard & Poor's Ratings Services still expects to assign a 'B'corporate credit rating to Delphi Corp. if the company emergesfrom bankruptcy in early April.

S&P has revised its expected issue-level ratings because changes to the structure of the proposed financings have affected relative recovery prospects among the various term loans. S&P's expected ratings are:

a) The $1.7 billion "first out" first-lien term loan B-1 is expected to be rated 'BB-' (two notches higher than the expected corporate credit rating on Delphi), with a '1' recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of payment default.

b) The $2 billion "second out" first-lien term loan B-2 is expected to be rated 'B' (equal to the corporate credit rating), with a '4' recovery rating, indicating the expectation of average (30%-50%) recovery in the event of payment default.

c) The $825 million second-lien term loan is expected to be rated 'B-' (one notch lower than the corporate credit rating), with a '5' recovery rating, indicating the expectation of modest (10%- 30%) recovery in the event of payment default.

DISTRIBUTED ENERGY: PwC Raises Going Concern Doubt Due to Losses ----------------------------------------------------------------Pricewaterhousecoopers LLP expressed substantial doubt about the ability of Distributed Energy Systems Corp. to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditing firm reported that the company has incurred significant recurring operating losses and cash outflows from operations.

Management of Distributed Energy related that since Dec. 31, 2006, the company's financial condition has deteriorated significantly. It had anticipated that its previously announced revenue initiatives would improve sales and margins, but sales and gross margins in the quarter and the 12 months ended Dec. 31, 2007, were below expectations, in particular in its Northern subsidiary.

The company's previously announced joint venture with Morgan Stanley Wind LLC did not generate new business in 2007 and therefore it exited this joint venture in February 2008 and received a one-time payment of $500,000 from Morgan Stanley Wind LLC for its 15% ownership share of the joint venture.

Accordingly, the company had been required to raise additional funds and significantly cut its costs in order for its business to survive.

The company stated that it incurred significant operating losses and negative cash flows from operating activities in each of the last three years and during the quarter and the 12 months ended Dec. 31, 2007. Such circumstances raise substantial doubt about its ability to continue as a going concern.

Perseus Partners Loans

To address the need to raise additional working capital, Distributed Energy entered into three loan transactions with Perseus Partners VII, L.P., or Perseus.

On June 1, 2007, the company closed on the first of these transactions, in which it borrowed $12.5 million from Perseus and issued to Perseus a warrant to purchase shares of its common stock. This loan bore interest at the rate of 12.5% per annum and was secured by all of the company's assets and those of its material subsidiaries.

On Aug. 24, 2007, the company closed on the second of the two transactions, in which it borrowed $15 million from Perseus, used a portion of these proceeds to repay the principal and accrued interest on the initial loan and issued another warrant to Perseus to purchase additional shares of its common stock.

The net amount received in the second loan, after deducting the amount necessary to repay the principal and accrued interest due on the initial note, was $2.1 million.

On March 13, 2008, the company borrowed an additional $1.5 million from Perseus. This additional convertible debt bears interest at 12.5% per annum and is due in full Nov. 30, 2008.

While the company recently obtained funding from Perseus, it does not expect that its current capital resources will be sufficient to operate its business beyond the next 30 to 45 days, and it expects that it will need to raise additional capital within the next 30 days to continue to operate.

Financials

Distributed Energy posted a net loss of $49,874,272 on net revenues of $29,388,281 for the year ended Dec. 31, 2007, as compared with a net loss of $53,355,195 on net revenues of $45,092,792 in the prior year.

At Dec. 31, 2007, the company's balance sheet showed $41,750,604 in total assets, $18,827,203 in total liabilities and $22,923,401 in stockholders' equity.

The affirmations, affecting approximately $30.1 million of outstanding certificates, reflect a stable relationship between credit enhancement and future loss expectations. The downgrades, affecting approximately $65,859 in outstanding certificates, reflect deterioration in the relationship between CE and loss expectation.

The collateral of the above transactions consists of fixed and hybrid adjustable-rate, 15- to 30-year fully amortizing mortgage loans secured by first liens on one- to four-family residential properties. As of February 2008, the transactions are seasoned 192 months (1992-A and 1992-1), 167 months (1994-3), and 96 months (2000-1). The pool factors for these transactions are approximately 2% (1992-A), 1% (1992-1 and 1994-3), and 4% (2000-1).

EIF CALYPSO: S&P Puts 'BB+' Rating on $650MM and $150MM Facilities------------------------------------------------------------------Standard & Poor's Ratings Services assigned its final rating of 'BB+' to EIF Calypso LLC's $650 million senior secured term loan and $150 million senior secured revolving credit facility. Calypso used proceeds from the issue to acquire an 80% membership interest in Calypso Energy Holdings LLC, a portfolio of 14 power generation assets in 12 states concentrated in the mid-Atlantic region of the U.S.

The term loan, combined with $807.5 million of equity, financed the acquisition of 2,331 MW of capacity (80% of the 3,608 MW portfolio) consisting of waste coal, scrubbed coal, and natural-gas fired power plants. The letter of credit will support hedges and contracts at the project level, fund-permitted capital expenditures, and provide a six-month debt service reserve.

All senior facilities are secured by a first-priority security interest in all of Calypso's equity interests in CE Holdings and any future, wholly owned subsidiary. At the same time, Standard & Poor's assigned a recovery rating of '2' to the facilities, indicating expectations of very high recovery (70%-90%) in the event of a payment default. The outlook is stable.

Standard & Poor's rates Calypso's $800 million senior secured 'BB+' with a recovery rating of '2', indicating the expectation of substantial recovery (70%-90%) in the event of default.

The stable outlook is based on the solid operational performance of the plants, combined with the investment-grade credit quality of the power-purchase agreement counterparties.

"At current debt levels, the plants are expected to distribute sufficient cash to EIF Calypso to amortize the tranches and build up reserves as needed," said Standard & Poor's credit analyst Justin Martin. Increased leverage at any of the projects, material changes to the PPA, or sustained and pronounced fuel price mismatches (resulting in trapped cash) could negatively affect the rating. "Given the contracted nature of the revenues, the fixed payment schedule, and the ceiling on asset sale proceeds, an upgrade is unlikely," he continued.

ELLEGY PHARMA: Mayer Hoffman Expresses Going Concern Doubt----------------------------------------------------------Mayer Hoffman McCann P.C. in Plymouth Meeting, Pa., raised substantial doubt about the ability of Cellegy Pharmaceuticals, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor reported that the company has incurred recurring losses from operations and has limited working capital to pursue its business alternatives.

The company posted a net loss of $1,927,061 on $0.00 revenue for the year ended Dec. 31, 2007, as compared with a net income of $9,671,805 on total sales of $2,660,058 in the prior year.

At Dec. 31, 2007, the company's balance sheet showed $2,094,092 in total assets, $904,344 in total liabilities and $1,189,748 in stockholders' equity.

Headquartered in Quakertown, Pennsylvania, Cellegy Pharmaceuticals, Inc. (OTC BB: CLGY.OB) -- http://www.cellegy.com/-- is a specialty biopharmaceutical company. Following the company's decision to eliminate its direct research activities and the sale of its assets to ProStrakan in late 2006, the company's operations currently relate primarily to the ownership of its intellectual property rights relating to the Biosyn product candidates and the evaluation of its remaining options and alternatives with respect to its future course of business.

EMPIRE RESORTS: Board of Directors Adopts Stockholder Rights Plan-----------------------------------------------------------------Empire Resorts Inc.'s board of directors adopted a Stockholder Rights Plan. Under the plan, Rights will be distributed as a dividend at the rate of one Right for each share of Empire common stock, par value $.01 per share, held by stockholders of record as of the close of business on April 3, 2008.

The Rights Plan is designed to deter coercive takeover tactics, including the accumulation of shares in the open market or through private transactions and to prevent an acquirer from gaining control of Empire without offering a fair and adequate price and terms to all of Empire's stockholders. The Rights will expire on March 24, 2010.

Each Right initially will entitle stockholders to buy one unit of a share of a series of preferred stock for $20. The Rights generally will be exercisable only if a person or group acquires beneficial ownership of 20 percent or more of Empire common stock or commences a tender or exchange offer upon consummation of which such person or group would beneficially own 20 percent or more of Empire's common stock.

Headquartered in Monticello, New York, Empire Resorts Inc.(NASDAQ: NYNY) -- http://www.empireresorts.com/-- operates the Monticello Gaming & Raceway and is involved in the development ofother legal gaming venues. Empire's facility now features over1,500 video gaming machines and amenities including a 350-seatbuffet and live entertainment. Empire is also working to developa "Class III" Native American casino and resort on a site adjacentto the Raceway and other gaming and non-gaming resort projects inthe Catskills and beyond.

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Empire Resorts Inc.'s consolidated balance sheet at Sept. 30,2007, showed $69.4 million in total assets and $82.8 million intotal liabilities, resulting in a $13.4 million totalstockholders' deficit.

FEDERAL-MOGUL: G. Michael Lynch Retires; Jeff Kaminski is New CFO-----------------------------------------------------------------In a regulatory filing with the Securities and Exchange Commission, Federal-Mogul Corporation Senior Vice President Robert L. Katz reports that effective March 31, 2008, G. Michael Lynch will retire as executive vice president and chief financial officer of Federal-Mogul.

In connection with Mr. Lynch's retirement, (i) the Amended and Restated Employment Agreement dated as of June 18, 2002 between the Company and Mr. Lynch and (ii) the Severance Agreement dated as of June 18, 2002 between the Company and Mr. Lynch will terminate on March 31, 2008.

Jeff Kaminski, age 46, will become the Company's senior vice president and chief financial officer effective April 1, 2008. Mr. Kaminski has served as the Company's Senior Vice President, Global Purchasing and a member of the Strategy Board of the Company since April 2005. From November 2003 to April 2005, he served as vice president of Global Supply-Chain Management. From July 2001 to November 2003, Mr. Kaminski was vice president of Finance and Powertrain Operations and served in numerous finance and operations positions including finance director for Sealing Systems, general manager of the Companys Aftermarket subsidiary based in Australia and International Controller for the Companys Aftermarket group.

Mr. Kaminski has been employed by the Company since 1989 with the exception of a brief period from January 2001 to July 2001 during which he served as vice president of Finance for GDX Automotive, according to Mr. Katz. Mr. Kaminski is a certified public accountant and began his career in 1983 with the accounting firm of Deloitte, Haskins & Seals before he joined RP Scherer Corporation in August 1987 and the Company in 1989.

Federal-Mogul reports that there are no family relationships between Mr. Kaminski and any other director or executive officer of the Company, or with any person selected to become an officer or a director of the Company. Other than as a result of Mr. Kaminski's employment with the Company, the Company adds that it has had no transactions since the beginning of its last fiscal year, and has no transactions proposed, in which Mr. Kaminski, or any member of his immediate family, has a direct or indirect material interest.

Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (OTCBB: FDMLQ) is a global supplier, serving the world's foremostoriginal equipment manufacturers of automotive, light commercial,heavy-duty, agricultural, marine, rail, off-road and industrialvehicles, as well as the worldwide aftermarket. Founded inDetroit in 1899, the company is headquartered in Southfield,Michigan, and employs 45,000 people in 35 countries. Aside fromthe U.S., Federal-Mogul also has operations in other locationswhich includes, among others, Mexico, Malaysia, Australia, China,India, Japan, Korea, and Thailand.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.They submitted a Disclosure Statement explaining that plan onApril 21, 2003. They submitted several amendments and on June 6,2004, the Bankruptcy Court approved the Third Amended DisclosureStatement for their Third Amended Plan. On July 28, 2004, theDistrict Court approved the Disclosure Statement. The estimationhearing began on June 14, 2005. The Debtors submitted a FourthAmended Plan and Disclosure Statement on Nov. 21, 2006, and theBankruptcy Court approved that Disclosure Statement on Feb. 6,2007. The Fourth Amended Plan was confirmed by the BankruptcyCourt on Nov. 8, 2007, and affirmed by the District Court onNov. 14. Federal-Mogul emerged from Chapter 11 on December 27,2007.

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As reported in the Troubled Company Reporter on Jan. 10, 2008,Moody's Investors Service confirmed the ratings of the reorganizedFederal-Mogul Corporation -- Corporate Family Rating, Ba3;Probability of Default Rating, Ba3; and senior secured bank creditfacilities, Ba2. The outlook is stable. The financing for thecompany's emergence from Chapter 11 bankruptcy protection has beenfunded in line with the structure originally rated by Moody's in apress release dated Nov. 28, 2007.

As reported in the Troubled Company Reporter on Jan. 7, 2008,Standard & Poor's Ratings Services assigned its 'BB-' corporatecredit rating to Southfield, Michigan-based Federal-Mogul Corp.following the company's emergence from Chapter 11 on Dec. 27,2007. The outlook is stable.

FEDERAL-MOGUL: Professionals Seek Postpetition Fees and Expenses----------------------------------------------------------------Three more professionals have sought allowance of their professional fees and expenses incurred during the bankruptcy cases of Delphi Corp. and its debtor-affiliates:

The Debtors hired Kostelanetz & Fink and Spriggs & Hollingsworth as their special insurance counsel. Spriggs & Hollingsworth gave the Debtors legal advice on matters related to Abex and to Ferodo America.

The Official Committee of Asbestos Property Damage Claimants retained Navigant Consulting as its asbestos claims consultants. On behalf of the Asbestos Property Damage Committee, Navigant conducted numerous investigations and analyses on the asbestos personal injury claims asserted against the Debtors.

Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (OTCBB: FDMLQ) is a global supplier, serving the world's foremostoriginal equipment manufacturers of automotive, light commercial,heavy-duty, agricultural, marine, rail, off-road and industrialvehicles, as well as the worldwide aftermarket. Founded inDetroit in 1899, the company is headquartered in Southfield,Michigan, and employs 45,000 people in 35 countries. Aside fromthe U.S., Federal-Mogul also has operations in other locationswhich includes, among others, Mexico, Malaysia, Australia, China,India, Japan, Korea, and Thailand.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.They submitted a Disclosure Statement explaining that plan onApril 21, 2003. They submitted several amendments and on June 6,2004, the Bankruptcy Court approved the Third Amended DisclosureStatement for their Third Amended Plan. On July 28, 2004, theDistrict Court approved the Disclosure Statement. The estimationhearing began on June 14, 2005. The Debtors submitted a FourthAmended Plan and Disclosure Statement on Nov. 21, 2006, and theBankruptcy Court approved that Disclosure Statement on Feb. 6,2007. The Fourth Amended Plan was confirmed by the BankruptcyCourt on Nov. 8, 2007, and affirmed by the District Court onNov. 14. Federal-Mogul emerged from Chapter 11 on December 27,2007.

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As reported in the Troubled Company Reporter on Jan. 10, 2008,Moody's Investors Service confirmed the ratings of the reorganizedFederal-Mogul Corporation -- Corporate Family Rating, Ba3;Probability of Default Rating, Ba3; and senior secured bank creditfacilities, Ba2. The outlook is stable. The financing for thecompany's emergence from Chapter 11 bankruptcy protection has beenfunded in line with the structure originally rated by Moody's in apress release dated Nov. 28, 2007.

As reported in the Troubled Company Reporter on Jan. 7, 2008,Standard & Poor's Ratings Services assigned its 'BB-' corporatecredit rating to Southfield, Michigan-based Federal-Mogul Corp.following the company's emergence from Chapter 11 on Dec. 27,2007. The outlook is stable.

FEDDERS CORP: Michael Giordano Steps Down as President and CEO--------------------------------------------------------------Effective March 21, 2008, Michael Giordano is no longer president and chief executive officer of Fedders Corporation, the company disclosed in a regulatory filing with the Securities and Exchange Commission dated March 28, 2008. Mr. Giordano will continue as a director of the company.

About Fedders Corporation

Based in Liberty Corner, New Jersey, Fedders Corporation --http://www.fedders.com/ -- manufactures and markets air treatment products, including air conditioners, air cleaners,dehumidifiers, and humidifiers. The company has productionfacilities in the United States in Illinois, North Carolina, NewMexico, and Texas and international production facilities in thePhilippines, China and India.

The company filed for Chapter 11 protection on Aug. 22, 2007,(Bankr. D. Del. Case No. 07-11182). Its debtor-affiliatesfiled for separate Chapter 11 cases. Norman L. Pernick, Esq.,Irving E. Walker, Esq., and Adam H. Isenberg, Esq., of Saul,Ewing, Remick & Saul LLP, represent the Debtors in theirrestructuring efforts. The Debtors have selected Logan & CompanyInc. as claims and noticing agent. The Official Committee ofUnsecured Creditors is represented by Brown Rudnick BerlackIsraels LLP. When the Debtors filed for protection from itscreditors, it listed total assets of $186,300,000 and total debtsof $322,000,000.

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As reported in the Troubled Company Reporter on March 4, 2008,the Debtors asked the Court to further extend their exclusiveperiod to file a Chapter 11 plan until April 14, 2008.

FINANCIAL GUARANTY: Moody's Cuts Insurer Strength Rating to 'Baa3'------------------------------------------------------------------Moody's Investors Service downgraded to Baa3, from A3, the insurance financial strength ratings of the operating subsidiaries of FGIC Corporation, including Financial Guaranty Insurance Company and FGIC UK Limited. Moody's has also downgraded the senior debt rating of the holding company, FGIC Corporation to B3 from Ba1, and the contingent capital securities ratings of Grand Central Capital Trusts I -- IV to B2 from Baa3.

These rating actions reflect the company's inability to date to raise new capital, the increased likelihood of FGIC breaching minimum regulatory capital requirements, and the effects of its current inability to upstream dividends without prior regulatory approval. The ratings remain under review for possible downgrade.

On March 28, 2008, FGIC filed its statutory statements indicating that, as a result of a loss of $1.5 billion, its statutory capital stood at approximately $260 million as compared to the minimum statutory capital requirement of $65 million. The three notch downgrade of FGIC's IFS ratings to Baa3 reflects Moody's view that the cushion above the required regulatory minimum may not be sufficient to absorb additional losses associated with FGIC's mortgage related exposures and the recent deterioration of Jefferson County bonds, to which FGIC has sizable exposure. Should FGIC breach the $65 million minimum statutory capital requirement the New York State Insurance regulator could take action to assume control of the operating company.

FGIC also announced that, as of Dec. 31, 2007, it had breached regulatory aggregate and single risk limits, which could cause the New York State Insurance Department to order that the company cease writing new business. FGIC has disclosed, however, that it has already voluntarily stopped writing new business in an attempt to improve its capital position through portfolio amortization.

According to Moody's, the downgrade of FGIC's contingent capital securities, Grand Central Trusts I-IV, to B2 reflects the increased possibility that the payment of preferred dividends might not be permitted by the regulator should FGIC decide to exercise its option to put non-cumulative preferred stock to the trusts. Moody's added that the downgrade of FGIC Corporation's senior unsecured debt to B3 reflects the operating company's inability, without regulatory approval, to upstream dividends to the holding company to service debt, coupled with the structural subordination of holding company senior bonds to operating company preferred stock.

Moody's noted that FGIC Corporation, having drawn the full amount of its bank credit facility, has approximately $250 million in holding company liquidity to pay interest on its bank facility and $325 million in senior bonds. However, the operating company's limits on writing new business and its inability to upstream dividends without regulatory approval heightens the refinancing risk associated with the bank credit facility, which matures in 2010.

Moody's also noted that FGIC has guaranteed the termination payments for certain public finance swap arrangements. Swap termination payments could be triggered if FGIC and the issuer were downgraded below certain rating thresholds and the issuer defaults on the termination payment. At this time, FGIC is not exposed to imminent termination payments. However, Moody's will continue to monitor the situation to determine the extent of possible future termination payments and the implications to FGIC's liquidity profile and capital adequacy.

FGIC announced that it has taken legal action against parties related to one ABS CDO transaction which accounts for over $900 million or 75% of the credit impairments taken in the fourth quarter of 2007. While the ultimate outcome of this dispute remains uncertain, a resolution favorable to FGIC could have positive implications for the company's capital adequacy position.

The ratings remain under review for downgrade to reflect the heightened risk of FGIC breaching minimum regulatory capital requirements, and the uncertain consequences for policyholders and creditors of possible regulatory intervention. Moody's stated that the ratings review will focus on additional details relating to FGIC's restructuring and recapitalization plan, any further movement in loss reserves at the end of 1Q2008, the implications of potential swap termination payments to liquidity and capital, the company's ongoing compliance with statutory requirements, and the implications of any actions on the part of the regulator.

List of Rating Actions

These ratings have been downgraded, and remain on review for possible downgrade:

Moody's ratings on securities that are guaranteed or "wrapped" by a financial guarantor are maintained at a level equal to the higher of a) the rating of the guarantor or b) the published underlying rating. Using this modified "credit substitution" approach, and following this rating action, the Moody's-rated securities that are guaranteed or "wrapped" by FGIC are also downgraded to Baa3, and remain on review for further downgrade, except those with higher published underlying ratings.

Overview of FGIC Corporation

FGIC Corporation is a holding company whose primary operating subsidiaries are Financial Guaranty Insurance Corporation and FGIC UK Limited, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. FGIC Corporation is privately owned by an investor group consisting of The PMI Group, GE and private equity firms Blackstone, Cypress and CIVC. At dEC. 31, 2007, FGIC Corporation reported GAAP losses of $1.8 billion and had shareholders' equity of approximately $584 million.

FINANCIAL GUARANTY: Howard C. Pfeffer Tenders Retirement Notice---------------------------------------------------------------FGIC Corporation, the parent company of Financial Guaranty Insurance Company, disclosed that Howard C. Pfeffer has notified the company and its board of directors of his desire to retire, effective April 1.

Mr. Pfeffer joined FGIC in December 2003 as president and chief underwriting officer. He later assumed responsibility for credit risk management, investment management and enterprise risk management.

Prior to FGIC, Mr. Pfeffer was vice chairman at Ambac Financial Group where he spent most of his career. Before this he was in Citicorp Investment Bank's municipal finance division. Mr. Pfeffer was instrumental in the development of FGIC's businesses during his tenure and also served as a member of FGIC Corporation's board of directors. The company extends its best wishes to him in his future endeavors.

FINANCIAL GUARANTY: S&P Slashes Financial Strength Rating to 'BB'-----------------------------------------------------------------Standard & Poor's Ratings Services lowered its financial strength rating on Financial Guaranty Insurance Co. six notches, to 'BB' from 'A', and its rating on holding company FGIC Corp. six notches, to 'B' from 'BBB'. Standard & Poor's also removed the ratings from CreditWatch with negative implications, where they had been placed on March 21, 2008; the outlook is negative.

At the same time, Standard & Poor's suspended its ratings on public finance and corporate transactions insured by FGIC that do not have an underlying public rating.

In S&P's opinion, FGIC has been slow to identify the unfavorable insured portfolio trends that have emerged and has failed to implement a strategic plan to re-establish itself as a viable operating entity capable of writing new business. The company has suspended underwriting new business in order to generate internal capital.

S&P's increased concerns over regulatory and managerial issues have led to a downgrade to the speculative grade level. Unlike many of its peers, FGIC has been unsuccessful so far in raising new external capital. The violation of certain New York State Insurance Department risk limits, as noted in financial statements released on March 26, 2008, may further hamper these efforts. The departure of FGIC's president, may further reduce management's overall effectiveness.

While the company has reportedly advised the Insurance Department of its desire to split into a mostly municipal operation, with a second company insuring mostly structured finance transactions, progress has been slow, in S&P's view. Most importantly, and regardless of whatever structure the company ultimately decides upon, S&P believes that new capital is a critical component.

The recent announcement by the PMI Group, FGIC's principal owner, that it would not be contributing additional capital was a setback. As time passes, the possibility of a run-off situation for FGIC becomes greater in S&P's opinion, and the likelihood of FGIC continuing as an operating entity capable of writing new business is waning.

Holding company FGIC Corp.'s ability to service its debt may be constrained by FGIC's statutory earned surplus deficit, resulting in FGIC being unable to upstream dividends to FGIC Corp. without insurance department approval.

Standard & Poor's believes that the credit characteristics of the underlying insured municipal, corporate, and structured transactions may be stronger than the FGIC-enhanced rating following the downgrade. For those issuers or issues for which S&P currently has an underlying rating, or SPUR, Standard & Poor's will rate to the higher of the SPUR or the insurer. Standard & Poor's has suspended its ratings on those issuers or issues that do not currently carry a SPUR. The option to enter a rating process in order to obtain a SPUR remains available to issuers.

A SPUR is S&P's opinion of the stand-alone creditworthiness of an issuer or transaction--that is, the capacity to pay debt service on a debt issue in accordance with its terms, without considering an otherwise applicable bond insurance policy. The SPUR, once assigned, remains in place regardless of what happens to the credit enhancer's rating, and is subject to surveillance by Standard & Poor's.

FORD MOTOR: Partners with Ontario Government to Save 300 Jobs-------------------------------------------------------------Autoworkers in Windsor will be back on the job at Ford Motor Company's Essex Engine Plant, thanks to a partnership between the Ontario government and Ford. The Canada Auto Workers union is celebrating the announcement by the Ontario government and Ford Canada of an investment needed to re-open the Ford Essex engine plant.

Ontario is providing $17 million to support Ford's $170 million-investment in a new engine program in Windsor, paving the way for about 300 workers to return to their jobs. Ford had initially proposed a $300 million investment in the plant, but later scaled back plans after the federal government failed to come forward with its $30 million portion.

The plant, which closed in November 2007, will re-open and employ 300 people who will build a new engine. The date for the re-opening has not yet been set. The second phase of the project could employ another 300 workers.

Strengthening key industry partnerships, like the one with Ford, is part of Ontario's five-point plan to build a stronger economy. The government's budget, released last week, also outlined investments in skills training and infrastructure, plans to lower business costs and support for innovation.

"Thanks to Ford, workers can return to the jobs they take pride in. This is great news for Windsor families," Premier Dalton McGuinty said.

"The partnership marks a big win for Ford, for Ontario and, most importantly, for the hardworking people of Windsor," Economic Development and Trade Minister Sandra Pupatello said.

CAW President Buzz Hargrove was on site for the announcement and said he is still optimistic that the federal Tory government will finally realize the importance of the project and put in their share.

"There is a chance to grow this program, if the federal government would do their part," Mr. Hargrove said. "The fact that they have so far refused to support the auto industry is incredibly frustrating and short-sighted."

Mike Vince, president of CAW Local 200, which represents Ford workers in Windsor said that the investment is an exciting opportunity for the members and the wider community which has been hard hit by massive job loss.

"It's something we have put a lot of time into and I'm happy to see that it has finally happened. After some very negative circumstances over the past few years, this announcement is a very welcome light at the end of the tunnel."

Windsor has the second highest unemployment rate of any city in Canada at 8.7%.

The company has operations in Japan in the Asia Pacific region.In Europe, the company maintains a presence in Sweden, and theUnited Kingdom. The company also distributes its brands invarious Latin American regions, including Argentina and Brazil.

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As reported in the Troubled Company Reporter on March 28, 2008,Standard & Poor's Ratings Services said that the ratings andoutlook on Ford Motor Co. and Ford Motor Credit Co. (both ratedB/Stable/B-3) were not affected by Ford's announcement of anagreement to sell its Jaguar and Land Rover units to Tata MotorsLtd. (BB+/Watch Neg/--) for $2.3 billion (before $600 million ofpension contributions by Ford for Jaguar-Land Rover).

As reported in the Troubled Company Reporter on Feb. 15, 2008,Fitch Ratings affirmed the Issuer Default Ratings of Ford MotorCompany and Ford Motor Credit Company at 'B', and maintained theRating Outlook at Negative.

As reported in the Troubled Company Reporter on Nov. 19, 2007,Moody's Investors Service affirmed the long-term ratings of FordMotor Company (B3 Corporate Family Rating, Ba3 senior secured,Caa1 senior unsecured, and B3 probability of default), but changedthe rating outlook to Stable from Negative and raised thecompany's Speculative Grade Liquidity rating to SGL-1 from SGL-3.Moody's also affirmed Ford Motor Credit Company's B1 seniorunsecured rating, and changed the outlook to Stable from Negative.These rating actions follow Ford's announcement of the details ofthe newly ratified four-year labor agreement with the United AutoWorkers.

FORTUNOFF: Panel Taps Morrison & Foerster to Replace Otterbourg---------------------------------------------------------------The Official Committee of Unsecured Creditors seeks the U.S. Bankruptcy Court for the Southern District of New York's authority to retain Morrison & Foerster LLP as its counsel, nunc pro tunc to March 6, 2008.

In behalf of Agio International Co., the Committee's chairperson, Thomas R. Gold, Esq., informs Judge James M. Peck that Morrison & Foerster would be substituted in the place of Otterbourg Steinder Houston & Rosen PC as counsel for the Committee starting on March 6.

Beginning Feb. 7 to March 4, 2008, the attorney at Otterbourg principally responsible for the representation of the Committee was Bret H. Miller. However, Mr. Miller resigned from his position as a partner at Otterbourg, and on March 4 joined Morrison & Foerster as a partner.

Mr. Gold says that although the Committee continued to receive high quality level representation following Mr. Miller's departure from Otterbourg, the Committee decided that its representation should follow Mr. Miller to his new firm, given his depth and knowledge of all issues relating to the Debtors' bankruptcy cases.

According to Mr. Gold, the Committee believes Morrison & Foerster is qualified to represent it in a cost-effective, efficient and timely manner. The Committee anticipates that, as its counsel, Morrison & Foerster will:

* assist and advise the Committee in its consultation with the Debtors relative to the administration of the Chapter 11 cases;

* attend meetings and negotiate with the representatives of the Debtors;

* assist and advise the Committee in its examination and analysis of the conduct of the Debtors' affairs;

* assist the Committee in the review, analysis and negotiation of any plan of reorganization and the accompanying disclosure statement;

* assist the Committee in the review, analysis, and negotiation of any financing agreements;

* generally prepare on behalf of the Committee all necessary motions, applications, answers, orders, reports and papers in support of positions taken by the Committee;

* appear, as appropriate, before the courts and the Unites States Trustee; and

* perform all other necessary legal services.

Morrison & Foerster is also expected to take all necessary action to protect and preserve the interests of the Committee, including:

(1) possible prosecution of actions on its behalf;

(2) if appropriate, negotiations concerning all litigation in which the Debtors are involved; and

(3) if appropriate, review and analysis of claims filed against the Debtors' estates;

Mr. Gold tells the Court that Morrison & Foerster intends to work closely with the Debtors' representatives, to ensure that there is no unnecessary duplication of services performed or charged to the Debtors' estates.

Morrison & Foerster proposes to charge the Committee on an hourly basis in accordance with its ordinary and customary rates. Mr. Gold informs the Court that with respect to attorneys at Morrison & Foerster who were previously at Otterbourg, Morrison & Foerster has reached an agreement with the Committee, pursuant to which the hourly rates will remain the same as at Otterbourg.

The Committee has also agreed, subject to Court approval, to reimburse Morrison & Foerster for all actual out-of-pocket expenses incurred Committee's behalf.

Mr. Miller assures the Court that his firm does not represent any interest adverse to the Debtors or their estate, and is a "disinterested" person within the meaning of Section 101(14) of the Bankruptcy Code.

* * *

Judge Peck authorized the Committee to retain Morrison & Foerster as its counsel, on an interim basis.

The Court held that Otterbourg will be entitled to reasonable compensation for services rendered to the Committee, for the period February 7 to March 26, 2008, plus reimbursement of actual and necessary expenses incurred.

Otterbourg will be relieved of all responsibilities and obligations to the Committee as of March 6, 2008, Judge Peck maintained.

The Court will convene a final hearing on April 22, 2008, at 10:00 a.m., to determine whether Committee's application to employ Morrison & Foerster should be granted on a permanent basis.

Judge Peck waived the requirement under Rule 9013-1(b) of the Local Bankruptcy Rules for the Southern District of New York, for the filing of a memorandum of law.

About Fortunoff

New York-based Fortunoff Fine Jewelry and Silverware LLC --http://www.fortunoff.com/-- is a family owned business since 1922 founded by by Max and Clara Fortunoff. Fortunoff offerscustomers fine jewelry and watches, antique jewelry and silver,everything for the table, fine gifts, home furnishings includingbedroom and bath, fireplace furnishings, housewares, and seasonalshops including outdoor furniture shop in summer and enchantingChristmas Store in the winter. It opened some 20 satellitestores in the New Jersey, Long Island, Connecticut andPennsylvania markets featuring outdoor furniture and grillsduring the Spring/Summer season and indoor furniture (and in somelocations Christmas trees and decor) in the Fall/Winter season.

FORTUNOFF: Court OKs Panel's Limited Engagement of Otterbourg -------------------------------------------------------------Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York approved the Official Committee of Unsecured Creditors' application to retain Otterbourg Steindler Houston & Rosen PC, as their attorneys, effective as of Feb. 7, 2008.

The Court held that Otterbourg will be entitled to reasonable compensation for services undertaken as proposed Committee Counsel for the period Feb. 7, 2008 to March 26, 2008, plus reimbursement of actual and necessary expenses incurred.

With a reservation of all rights and remedies, Otterbourg was to have been relieved of all responsibilities and obligations to the Committee as of March 6, 2008, the Court said.

The Committee is seeking permision to retain Morrison & Foerster LLP as counsel, nunc pro tunc to March 6, 2008, to replace Otterbourg. A separate story on the Committee's application is reported in today's Troubled Company Reporter.

About Fortunoff

New York-based Fortunoff Fine Jewelry and Silverware LLC --http://www.fortunoff.com/-- is a family owned business since 1922 founded by by Max and Clara Fortunoff. Fortunoff offerscustomers fine jewelry and watches, antique jewelry and silver,everything for the table, fine gifts, home furnishings includingbedroom and bath, fireplace furnishings, housewares, and seasonalshops including outdoor furniture shop in summer and enchantingChristmas Store in the winter. It opened some 20 satellitestores in the New Jersey, Long Island, Connecticut andPennsylvania markets featuring outdoor furniture and grillsduring the Spring/Summer season and indoor furniture (and in somelocations Christmas trees and decor) in the Fall/Winter season.

FORTUNOFF: Mahoney Cohen Serves as Committee's Financial Advisor----------------------------------------------------------------The Official Committee of Unsecured Creditors sought and obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to retain Mahoney Cohen & Company, CPA, P.C., as its financial advisor, effective as of Feb. 8, 2008.

On behalf of Agio International Co., Ltd, chairperson of the Committee, Thomas Gold, Esq., says the Committee selected Mahoney because of the firm's extensive experience in, and knowledge of business reorganizations under Chapter 11 of the Bankruptcy Code.

As the Committee's financial advisor, Mahoney Cohen will:

* assist the Committee in its evaluation of the Debtors' postpetition cash flow and other projections and budgets prepared by the Debtors or their financial advisors;

* monitor the Debtors' activities regarding cash expenditures and general postpetition business operations;

* assist the Committee in its review of monthly operating reports submitted by the Debtors or their financial advisors;

* assist with any investigation into prepetition acts, conduct, property, liabilities and financial condition of the Debtors, their management or creditors, including the operation of the Debtors' business, as instructed by the Committee;

* analyze transactions with vendors, insiders, related or affiliated companies, subsequent and prior to the Petition, Date, as instructed by the Committee;

* assist the Committee or its counsel in any litigation against the financing institutions of the Debtors, certain insiders and other potential adversaries -- including their testimony, if necessary;

* assist the Committee in its review of the financial aspects of any proposed asset purchase agreement or evaluation any plan of reorganization or liquidation; and, if applicable, assist the Committee in negotiating, evaluating and qualifying any competing offers;

* attend meetings with representatives of the Committee and their counsel, and prepare presentations to the Committee that provides analyses and updates on diligence performed; and

* perform any other services that may be requested by the Committee.

Mahoney Cohen will work closely with the Debtors' representatives and the other professionals retained by the Committee, to ensure that there is no unnecessary duplication of services performed or charged to the Debtors' estates.

Mahoney Cohen will charge for its services on an hourly basis in accordance with its ordinary and customary hourly rates. The firm will be reimbursed for actual and necessary out-of-pocket expenses incurred. Mahoney Cohen's current hourly rates are:

Charles M. Berk, a certified public accountant and a shareholder of Mahoney Cohen, assures the Court his firm does not represent any interest adverse to the Debtors or their estate, and is a "disinterested" person within the meaning of Section 101(14) of the Bankruptcy Code.

About Fortunoff

New York-based Fortunoff Fine Jewelry and Silverware LLC --http://www.fortunoff.com/-- is a family owned business since 1922 founded by by Max and Clara Fortunoff. Fortunoff offerscustomers fine jewelry and watches, antique jewelry and silver,everything for the table, fine gifts, home furnishings includingbedroom and bath, fireplace furnishings, housewares, and seasonalshops including outdoor furniture shop in summer and enchantingChristmas Store in the winter. It opened some 20 satellitestores in the New Jersey, Long Island, Connecticut andPennsylvania markets featuring outdoor furniture and grillsduring the Spring/Summer season and indoor furniture (and in somelocations Christmas trees and decor) in the Fall/Winter season.

Given project cost overruns beyond initial estimates and weaker-than-expected cash flow from operations, S&P believes that Frontier Drilling will need to raise additional capital over the near term, a risk heightened by a currently turbulent credit market.

Costs of upgrading and maintaining the company's drillships and delays in recontracting in early 2008 will likely cause cash flow from operations to fall short of projections. If the company is unable to secure additional financing by June 2008 and successfully recontract its Southeast Asian unit at a favorable dayrate, S&P would likely downgrade Frontier Drilling to 'CCC+' and assign a developing outlook.

S&P is aware that Frontier Drilling's private-equity sponsors have made equity infusions in the past to meet the company's capital needs in funding both internal and growth initiatives. Although S&P has not yet received Frontier Drilling's audited financial statements for fiscal 2007, S&P notes that the company in March drew down the full amount on its $60 million senior secured revolving credit facility.

GENERAL MOTORS: Ex-Unit Delphi Wants Indemnification Pact Extended------------------------------------------------------------------Delphi Corp. and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to extend the indemnification agreement between Delphi Corp. and General Motors Corp. with respect to the UAW Benefit Guarantee, dated as of Dec. 22, 1999, for an additional time period of up to 15 days, until April 15, 2008, if GM extends its obligations under the UAW Benefit Guarantee by the same period of time.

As reported in the Troubled Company Reporter on June 26, 2007, the United Automobile, Aerospace and Agricultural Implement Workers of America, Delphi, and GM entered into a memorandum of understanding. Among other things, the UAW-Delphi-GM Memorandum of Understanding was designed to enable Delphi's continued transformation to more competitive wage and benefit levels and to address divestiture, work rules, and staffing level issues in the Debtors' workforce.

Pursuant to the UAW-Delphi-GM Memorandum of Understanding, the UAW, Delphi, and GM also agreed to the "Term SheetDelphi Pension Freeze and Cessation of OPEB, and GM Consensual Triggering of Benefit Guarantee," which facilitates the freezing of Delphi's pension plan and the assumption of billions of dollars of OPEB liabilities by GM, thereby dramatically reducing Delphi's ongoing benefit costs. The UAW-Delphi-GM Memorandum of Understanding was ratified by the UAW membership on June 28, 2007, and approved by the Court on July 19, 2007.

The UAW-Delphi-GM Memorandum of Understanding extended the time period for certain of GM's obligations under the Sept. 30, 1999 Benefit Guarantee Agreement between GM and the UAW to March 31, 2008, if Delphi commenced solicitation of acceptances of a plan of reorganization prior to Dec. 31, 2007. Delphi and GM also agreed that the eighth anniversary date reference in the Indemnification Agreement would be extended until March 31, 2008, if Delphi commenced solicitation of acceptances of a plan of reorganization prior to Dec. 31. The Debtors' Chapter 11 Plan, however, was not confirmed and substantially consummated byDec. 31. Nonetheless, the UAW-Delphi-GM Memorandum of Understanding additionally provided that the March 31, 2008 UAW Benefit Guarantee extension date would be extended to "such later date as Delphi and GM will agree to extend the Indemnification Agreement expiration."

Under the provisions of the Memorandum of Understanding approved by the Court on July 19, 2007, the Debtors believe that they already have authority to extend the Indemnification Agreement for additional time periods. Out of an abundance of caution, however, and as a result of GM's unique role in the Chapter 11 cases, the Debtors seek the Court's authority to extend the Indemnification Agreement.

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, asserts that an extension will allow Delphi's indemnification obligations under the Indemnity Agreement to continue uninterrupted until it has emerged from Chapter 11. If the Plan is not consummated, the extension will also provide additional time for the Debtors to consider whether additional extensions are appropriate or viable.

The extension, in the exercise of the Debtors' business judgment, is in the best interests of the Debtors' estates, creditors, and other parties-in-interest, including Delphi's employees, Mr. Butler asserts.

Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systemsand modules, and other electronic technology. The company'stechnology and products are present in more than 75 millionvehicles on the road worldwide. Delphi has regional headquartersin Japan, Brazil and France.

The Court approved Delphi's First Amended Joint DisclosureStatement and related solicitation procedures for the solicitationof votes on the First Amended Plan on Dec. 20, 2007. The Courtconfirmed the Debtors' First Amended Plan on Jan. 25, 2008.

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars andtrucks in 35 countries. In 2007, nearly 9.37 million GM cars andtrucks were sold globally under the following brands: Buick,Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStarsubsidiary is the industry leader in vehicle safety, security andinformation services.

* * *

As reported in the Troubled Company Reporter on March 26, 2008,Standard & Poor's Ratings Services placed the ratings on GeneralMotors Corp., American Axle & Manufacturing Holdings Inc., LearCorp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review theratings in light of the extended American Axle (BB/Watch Neg/--)strike.

The work stoppage that began Feb. 25 at American Axle's U.S.United Auto Workers plants has forced closure of many GM (B/WatchNeg/B-3) plants, as well as plants of certain GM suppliers. Thestrike began after the expiration of the four-year master laboragreement with American Axle. Although S&P still expects AmericanAxle and the UAW to reach an agreement that will reflect morecompetitive labor costs, the timing is unknown.

To resolve the CreditWatch listings, S&P's will assess thestrike's impact on the companies' credit profiles, particularlyliquidity, once production resumes. S&P could lower the ratingsany time prior to a resolution of the Axle strike if the liquidityof the companies becomes compromised, although downgrades are notlikely for another several weeks.

As reported in the Troubled Company Reporter on Feb. 28, 2008,Fitch Ratings has affirmed the Issuer Default Rating of GeneralMotors at 'B', with a Rating Outlook Negative.

As reported in the Troubled Company Reporter on Nov. 9, 2007,Moody's Investors Service affirmed its rating for General MotorsCorporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1senior unsecured and SGL-1 Speculative Grade Liquidity rating) butchanged the outlook to Stable from Positive. In an environment ofweakening prospects for US auto sales GM has announced that itwill take a non-cash charge of $39 billion for the third quarterof 2007 related to establishing a valuation allowance against itsdeferred tax assets in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,Standard & Poor's Ratings Services affirmed its 'B' corporatecredit rating and other ratings on General Motors Corp. andremoved them from CreditWatch with positive implications, wherethey were placed Sept. 26, 2007, following agreement on the newlabor contract. The outlook is stable.

Affirmations are due to the stable performance of the pool. There has been minimal pay down of the transaction since issuance. As of the March 2008 distribution date, the transaction has paid down 0.2% to $6.57 billion from $6.58 billion at issuance.

Four loans (10.2%) maintain their investment grade shadow ratings. The largest shadow rated loan, 590 Madison Avenue (5.3%), is a 1 million square foot office building located in midtown New York City. The servicer reported occupancy as of December 2007 was 100%. The loan is interest-only with a coupon of 5.46% that matures in 2017.

The Merchandise Mart (2.7%) consists of a single wholesale trade mart with nearly 3.5 million SF in Chicago, Illinois. Servicer reported occupancy has improved to 99% as of February 2008 from 95% at issuance. The loan is interest-only with a coupon of 5.57% that matures in 2016. Boulevard Mall (1.6%) is located in Amherst, New York and consists of 762,407 sf. In-line occupancy has increased to 97% as of September 2007, compared to 95% at issuance. The loan is interest-only with a coupon rate of 6.04% and matures in 2017. Victoria Ward (0.6%) is located in Honolulu, Hawaii and is comprised of a 159,126 sf retail/office property. Servicer reported combined occupancy has declined to 78% as of September 2007, down from 90.9% at issuance due to vacancies in the retail portion of the collateral. The loan is interest-only with a coupon of 5.52% and a maturity in 2011.

There are no scheduled maturities until 2011. Interest-only loans represent 76.4% of the pool, including the top 10 loans (40.2%) in the transaction.

HOOP HOLDINGS: Has Interim Court Nod to Use Wells Fargo Collateral------------------------------------------------------------------The United States Bankruptcy Court for the District of Delaware authorized Hoop Retail Stores LLC to use, on an interim basis, the cash collateral of Wells Fargo Retail Finance LLC, as prepetition agent, until May 31, 2008.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A. in Wilmington, Delaware, says that the cash collateral will be used solely to repay the prepetition debt and all liabilities.

As of March 26, 2008, the Debtor owed at least $9.3 million under their prepetition loan agreement with Wells Fargo and $15.6 million in letters of credit plus interests. The sums were used to fund working capital requirements. The prepetition debt were secured by interests and liens on the Debtor's assets.

The prepetition lenders have consented to the Debtor's use of the cash collateral.

As adequate protection for the interest of the prepetition lender, Wells Fargo will be entitled to prepetition replacements liens, prepetition superpriority claim, adequate protection payments, and a $250,000 prepetition indemnity account.

The Debtor provided a budget projecting cash flow for 13 weeks. A full-text copy of that budget is available for free at:

The Hon. Mary F. Walrath will hold a hearing April 16, 2008, at 11:00 a.m. to consider final approval of the Debtor's request. Objections, if any, are due April 9, 2008, at 4:00 p.m. Objections must be delivered to the Debtors, Wells Fargo, The Children's Place Retail Stores, Inc., and The Walt Disney Company, as well as the United States Trustee for Region 3 and counsel to any statutory committee appointed in the cases.

The Children's Place Retail Stores, Inc., is represented by Lori R. Fife, Esq., at Weil Gotshal & Manges LLP, in New York. The Walt Disney Company is represented by Lisa Hill Fenning, Esq., at Dewey & LeBoeuf LLP in Los Angeles, California.

About Hoop Holdings

Headquartered in Secausus, New Jersey, Hoop Holdings LLC owns and operates gift, novelty, and souvenir shops. The company and two of its affiliates (Hoop Retail Stores, LLC and Hoop Canada Holdings, Inc.) filed for Chapter 11 protection on March 27, 2008 (Bankr. D. Del. Lead Case No.08-10544). Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, represents the Debtors in their restructuring efforts. The U.S. Trustee for Region 3 has not appointed creditors to serve on an official committee of unsecured creditors or examiner under these cases. When the Debtors' filed for protection against their creditors, they listed assets and debts between $100 million to $500 million.

HOOP HOLDINGS: Gets Initial Nod to Use Wells Fargo's $35 Mil. Loan------------------------------------------------------------------The United States Bankruptcy Court for the District of Delaware authorized Hoop Retail Stores LLC to obtain, on an interim basis, up to $35,000,000 of debtor-in-possession financing from Wells Fargo Retail Finance LLC, as collateral agent and administrative agent.

The Court allows Hoop Retail to access at least $30,000,000 from the facility on the interim. The DIP facility will mature Sept. 25, 2008. The facility, however, will expire and become due on April 30, 2008, if the Court has not entered a final order by that date. The facility will bear interest at a rate per annum equal to the base rate plus base rate loans of 1.5%.

The Debtor said it has an immediate need for postpetition financing to fund business operations, and to administer and preserve the value of assets. Specifically the Debtors will apply the fund to finance, among other things:

-- working capital and general corporate purposes;

-- payment of costs of administration of the case;

-- all prepetition issued under the prepetition loan agreement will bee deemed issued under the DIP loan agreement; and

-- payment in full of the priority facility, upon entry of the final DIP order.

The Debtor will pay a host of fees to the lender including a $337,500 closing fee and a non-refundable servicing fee of $5,000 per month. It will also pay an unused line fee of 0.375% per annum.

To secure its DIP Obligations, the Debtor will grant Wells Fargo a superpriority administrative claim over all administrative expense claims and unsecured claims against the Debtors and their estate. The DIP liens are subject to a carve-out for fees payable to bankruptcy professionals, the U.S. Trustee and the Clerk of Court.

The Hon. Mary F. Walrath will hold a hearing April 16, 2008, at 11:00 a.m. to consider final approval of the Debtor's request. Objections, if any, are due April 9, 2008, at 4:00 p.m. Objections must be delivered to the Debtors, Wells Fargo, The Children's Place Retail Stores, Inc., and The Walt Disney Company, as well as the United States Trustee for Region 3 and counsel to any statutory committee appointed in the cases.

The Children's Place Retail Stores, Inc., is represented by Lori R. Fife, Esq., at Weil Gotshal & Manges LLP, in New York. The Walt Disney Company is represented by Lisa Hill Fenning, Esq., at Dewey & LeBoeuf LLP in Los Angeles, California.

About Hoop Holdings

Headquartered in Secausus, New Jersey, Hoop Holdings LLC owns and operates gift, novelty, and souvenir shops. The company and two of its affiliates (Hoop Retail Stores, LLC and Hoop Canada Holdings, Inc.) filed for Chapter 11 protection on March 27, 2008 (Bankr. D. Del. Lead Case No.08-10544). Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, represents the Debtors in their restructuring efforts. The U.S. Trustee for Region 3 has not appointed creditors to serve on an official committee of unsecured creditors or examiner under these cases. When the Debtors' filed for protection against their creditors, they listed assets and debts between $100 million to $500 million.

HSBC FINANCE: KVAM Urges HSBC to Shed Off Burdensome U.S. Unit--------------------------------------------------------------HSBC Holdings plc was told by a shareholder to divest its U.S. unit, saying that the bank's shares would increase if it actually sold or "ring-fenced" the U.S. business.

Knight Vinke Asset Management said that HSBC Finance is loaded up with too much debt, and doing away with it means a "200-300 pence" increase in HSBC Holding's shares.

In a letter to HSBC Holdings dated March 14, KVAM CEO Eric Knight related to HSBC that the HSBC Finance matter was KVAM's greatest concern, and lamented that:

-- HFC has an unsustainable business model; and -- HFC is structurally unable to support $150 billion of its debt.

Mr. Knight contended that the HSBC Group continues to be at risk so long as HSBC is injecting substantial capital into HFC to keep it afloat. KVAM, he said, is worried about the increasing risk of debt raised in the wholesale markets to lend to sub-prime creditors, of which HFC relies almost entirely on.

According to Mr. Knight, KVAM's suggestion to ring-fence HFC was met by a hasty comment that said it would be "irresponsible" and "unthinkable" for HSBC to walk away from HFC.

Mr. Knight relates that HSBC has provided a massive amount of financial support to HFC:

a) a $3 billion of additional equity which has been injected since the acquisition of Household International in 2003;

b) over $40 billion as at Dec. 31, 2007, provided through a mixture of loans from HSBC to HFC;

c) receivables-based financing from HSBC Bank USA; and

d) other asset purchases.

Taking into account the acquisition price of $14.8 billion, HSBC has disbursed almost $60 billion on HFC since 2003 and this amount is likely to increase very quickly given the additional $1.6 billion equity injection already required in 2008, the amount of HFC expected losses and $80 billion in HFC debt which need to be refinanced in the next three years.

With absolutely no access to customer deposits and only limited access to the debt markets, HFC is increasingly dependent on asset sales and support from its parent for funding, averred Mr. Knight. With delinquencies rising, KVAM believes that net interest and loan repayments received may not cover the operating cash flow needs of the business.

KVAM also observed that net new lending has virtually come to a standstill and is projected to go into negative territory next year. Even more worrying however, said Mr. Knight, is the fact that debt repayments due over the next three years amount to over $80 billion.

Mr. Knight argued that HFC will require significant additional capital from its parent just to survive and that, even after the U.S. property market finally recovers, the business will probably not be worth anything to HSBC's shareholders.

"As of today, selling the business may no longer be possible on acceptable terms but it may still be possible to spin it off or otherwise ring-fence it," Mr. Knight said in the letter. "If all else fails, then the best course of action may well be for HFC to file for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code," he concluded.

About KVAM

Knight Vinke Asset Management -- http://www.kvamllc.com/-- is a privately owned investment management firm specializing in institutional shareholder activism with offices in New York and Monaco. The firm invests in underperforming large cap public companies and instigates change by highlighting inefficiences with respect to structure and poor corporate governance. The company seeks to build a consensus amongst shareholders, board members, management, financial analysts and others, as to the appropriate remedies. It then aims to convince the board of directors or controlling shareholder to adopt these remedies, thereby creating value for all shareholders.

About HSBC Holdings

Based in London, HSBC -- http://www.hsbc.com/-- is one of the largest banking and financial services organisations in the world. HSBC's international network comprises over 10,000 offices in 83 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.

HSBC Financial Corporation Limited and its subsidiaries, HSBC Retail Services Limited, HSBC Finance Mortgages Inc., HSBC Finance Corporation Canada -- http://www.hsbcfinance.ca/-- service millions of customers in Canada with financial products and is proud to now be a member of the HSBC Group . HSBC Finance has the experience and resources to tailor loans that help customers reach their financial goals and realize their dreams.

"The CreditWatch listing follows the company's guidance yesterday that it expects mid-single-digit percentage declines in multi-product amortized revenue," noted Standard & Poor's credit analyst Emile Courtney. "In addition, Idearc restated its expectation for operating margin contraction in 2008. As a result, we expect EBITDA to decline in the 10% area for the year, which is at a higher rate than our previous expectation. This comes at a time when the company is facing secular challenges to its print product offerings and has limited flexibility in its leverage profile, with total debt (adjusted for operating leases and expected pension and postretirement obligations) to EBITDA of about 6x as of December 2007."

Idearc also announced it would eliminate its common dividend, which totaled $200 million in 2007. Although the dividend elimination will enable Idearc to significantly increase the amount of discretionary cash flow available for debt repayment, the action reflects greater uncertainty for the company's operations because of a slowing economy in 2008.

In addition to deteriorating operating expectations for 2008, revenue and EBITDA declines accelerated at Idearc throughout 2007. Revenue and EBITDA declined 1.8% and 6.9%, respectively, in the December 2007 quarter, and 0.8% and 2.7%, respectively, in 2007.

S&P's review will incorporate its previous and current expectation that free cash flow in 2008 will increase meaningfully from the $323 million generated in 2007 due to a decrease in uses for working capital purposes, notwithstanding lower EBITDA generation. Free cash flow in 2007 was impaired by a use of cash to fund working capital of $308 million, the majority of which was a result of extended days sales outstanding as Idearc began the direct billing of customers-this usage of cash is mostly expected to reverse in 2008. After factoring in the dividend elimination, the company appears to be in a position to reduce debt balances by an amount significantly more than the modest $50 million it repaid in 2007 (in the absence of acquisitions).

Notwithstanding higher free cash flow and greater debt repayment potential in 2008, S&P does not expect leverage to improve given the lower EBITDA estimate. Idearc's long-term business and operating outlook will be key to the resolution of S&P's CreditWatch listing.

INTEREP NATIONAL: Files for Bankruptcy; To Restructure $99MM-Debt-----------------------------------------------------------------Interep National Radio Sales Inc., along with 14 of its affiliates, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York, Dawn McCarty of Bloomberg News reports.

To restructure Interep National's debt, $99,000,000 in senior subordinated bonds due July 2008 will be paid through issuance of secured debt and new stock, Mrs. McCarty says.

Mrs. McCarty further says, citing a company official with knowledge of these cases, Interep National sought relief in order to carry out a prepackaged reorganization plan. Creditors have expressed their support for the plan, company official said.

The plan, however, has yet to be filed before the Court, Bloomberg notes.

On March 31, 2008, the company has entered into a consensual balance sheet restructuring to be implemented through a Chapter 11 plan of reorganization.

Under the agreement, which is supported by Interep's largest bondholders, funds managed by Oaktree Capital Management, L.P. and Silver Point Capital, L.P., will allow the company to eliminate all of its existing cash-pay indebtedness. Oaktree and Silver Point have also agreed to provide Interep with a new $25 million credit facility.

"The strategic decision Interep has chosen to take today establishes a solid financial footing for the company going forward," said David Kennedy, the company's Vice Chairman and Chief Executive Officer. "With the agreement of the key bondholders, the company now has a plan that will reduce debt, provide the financial resources to grow, and put any uncertainty about Intereps future behind us."

Interep noted that its clients and customers will not be affected by the Chapter 11 process, and that the company intends to honor all obligations in the ordinary course.

Interep anticipates that the reorganization will receive formalcourt approval within 90 days.

"This agreement was made possible because of the commitmentof these long-term financial partners, the outstanding staffand management of Interep, and the tremendous radio and televisionstation clients, agencies and advertisers the company serves," Mr. Kennedy added. "I am grateful to all of them for their patience and trust as the company has worked diligently over the past several months to address its balance sheet issues for the long-term. [Mon]day's announcement marks an exciting new chapter for Interep, one that I'm confident will demonstrate how a well-capitalized and truly independent rep firm will be able to achievethe best possible results for everyone it serves."

About Interep National Radio

Headquartered in New York, New York, Interep National Radio Sales,Inc. -- http://www.interep.com/-- are independent sales and marketing companies that specialize in radio, the Internet,television and complementary media. With 16 offices across theU.S., they serve radio and television station clients and advertisers in all 50 states and beyond. The company and 14 ofits affiliates filed for Chapter 11 protection on March 30, 2008(Bankr. S.D.N.Y. Lead Case No.08-11079).

Erica M. Ryland, Esq., at Jones Day, represents the Debtors intheir restructuring efforts. No Official Committee has beenappointed in the cases to date. When the Debtor filed forprotection from their creditors, it listed between $50 million and $100 million in asset and between $100 million and $500 million in debts.

INTERTAPE POLYMER: Posts $8.3 Mil. Net Loss for Fiscal Year 2007 ----------------------------------------------------------------Intertape Polymer Group Inc. reported a net loss of $0.7 million for the three months ended Dec. 31, 2007, down from $15.1 million of net loss for the same period in 2006. For the fiscal year ended Dec. 31, 2007, the company incurred a net loss of $8.3 million from $166.6 million in 2006.

The net loss for 2007 includes $8.1 million of manufacturing facility closures, restructuring, strategic alternatives and other charges, compared to similar charges in 2006 of $76.1 million.

For the 2007 fourth quarter, the company generated sales of $191.4 million compared to the $187.3 million sales in 2006. For fiscal 2007, the company's sales reached $767.2 million from $812.2 million in 2006.

"Intertape completed an eventful year with an encouraging performance, notwithstanding the challenges created by the strategic alternatives process which affected the first half of 2007 and most of 2006," Melbourne F. Yull, executive director of International Polymer, said. "With these disruptions behind us and a new Board in place, we progressed steadily, despite the downturn in the US residential construction market.

"All of the company's key second half fiscal 2007 earnings metrics improved compared to the second half of fiscal 2006," Mr. Yull stated.

"We have maintained our strong focus on cost reductions and reduced SG&A expenses by $13.7 million in 2007 compared to 2006 levels," Victor V. DiTommaso, chief financial officer of the company, said. "The new financing announced earlier today will contribute to an expected interest expense reduction of approximately $8.4 million in 2008 compared to 2007."

Pre-tax earnings for the year ended Dec. 31, 2007 were $3.9 million compared to a pre-tax loss of $197.4 million in 2006. Exclusive of manufacturing facility closures, restructuring, strategic alternatives and other charges and the 2006 goodwill impairment charge, pre-tax earnings for fiscal 2007 were $12.0 million compared to a pre-tax loss of $1.4 million in 2006 and for the fourth quarter of 2007 pre-tax earnings were $2.6 million, compared to a pre-tax loss of $3.7 million for the fourth quarter of 2006.

Gross profit was $114.4 million in 2007, a decrease of 2.7% from 2006. Gross margin represented 14.9% of sales in 2007 and 14.5% in 2006. However, second half 2007 gross profits and gross margins improved compared to second half 2006 levels, primarily the result of cost reductions implemented by the company in late 2006 and early 2007. While sales volumes declined 5.5% in 2007, manufacturing expenses for 2007 were reduced by 8.9%.

Gross profits for the fourth quarter of 2007 were $27.8 million at a gross margin of 14.5% compared to $22.8 million at a gross margin of 12.2% for the fourth quarter of 2006. Results for the fourth quarter of 2007 also reflect the company's improved ability to recover raw material cost increases during the period.

About Intertape Polymer Group

Based in Montreal, Quebec and Sarasota/Bradenton, Florida,Intertape Polymer Group Inc. (NYSE,ITP; TSX: ITP.TO) -- http://www.intertapepolymer.com/-- develops and manufactures specialized polyolefin plastic and paper-based packaging productsand complementary packaging systems for industrial and retail use. The company employs approximately 2,100 employees with operationsin 17 locations, including 13 manufacturing facilities in NorthAmerica and one in Europe.

* * *

As reported int the Troubled company Reporter on Dec. 26, 2007, Standard & Poor's Ratings Services raised its ratings on IntertapePolymer Group Inc. including its corporate credit rating to 'B'from 'B-'. The outlook is stable.

INTERTAPE POLYMER: Secures $200MM Senior Secured Credit Facility ----------------------------------------------------------------Intertape Polymer Group Inc. entered into a new $200 million Senior Secured Credit Facility consisting of a U.S. revolving credit facility in the amount of $185 million and a Canadian revolving credit facility in the amount of $15 million.

IPG also obtained a letter of credit facility with a sublimit in the amount of $15 million. The Credit Facility is secured by a first lien on the non-real estate assets of IPG and substantially all of its subsidiaries. Upon funding on March 28, 2008, proceeds will be used to repay the $117 million currently outstanding under the Company's existing credit facility.

The $200 million Credit Facility has been provided by a bank syndicate. The Credit Facility has a five year term and shall bear interest at either Libor plus 1.75%, or the prime rate set by Bank of America plus 0.25%, as elected by IPG, through Sept. 30, 2008. Thereafter, the applicable margin shall adjust quarterly based on the then outstanding availability under the Credit Facility.

In connection with the repayment of the existing credit facility, the Ccompany terminated its two outstanding interest rate swap agreements at a cost of approximately $3 million. In addition, the company expects to record a non-cash charge of approximately $3.4 million in the first quarter of 2008 representing the accelerated amortization of the debt issue expenses relating to the termination of the existing credit facility.

The combination of the new financing and the $80 million reduction of debt during 2007 coupled with the decline in current Libor interest rates should result in a reduction of interest expense of approximately $ 8.4 million in 2008 compared to 2007.

The new facility has eliminated the financial ratio covenants set forth in the prior credit agreement with the exception of a fixed charge coverage ratio that becomes effective only when unused availability is less than $25 million. At closing, the company is well onside in this regard.

"We are pleased with the terms of our new Credit Facility and believe the successful refinancing of our Credit Facility is indicative of the progress made in improving the financial stability of the company," IPG's Victor DiTommaso, CPA, chief financial officer, stated. "The company's ability to refinance this part of the debt in these difficult times reflects our strong cash flows and the confidence our lenders have in the company."

IPG has approximately $39 million of liquidity upon closing of its new Credit Facility. While IPG anticipates that its free cash flows will enable it to reduce its borrowings under the Credit Facility during 2008, the company retains the ability to obtain additional financing secured by all or a portion of its owned real estate in an amount of up to $35 million.

"The company anticipates that the refinancing of its Credit Facility, its ongoing efforts to reduce costs, the introduction of five new products and the realignment of sales personnel focusing on propriety and high margin niche markets, should significantly contribute to the financial results of the company in the second half of 2008," Melbourne F. Yull, executive director of IPG, said.

About Intertape Polymer Group

Based in Montreal, Quebec and Sarasota/Bradenton, Florida,Intertape Polymer Group Inc. (NYSE,ITP; TSX: ITP.TO) -- http://www.intertapepolymer.com/-- develops and manufactures specialized polyolefin plastic and paper-based packaging productsand complementary packaging systems for industrial and retail use. The company employs approximately 2,100 employees with operationsin 17 locations, including 13 manufacturing facilities in NorthAmerica and one in Europe.

* * *

As reported in the Troubled Company Reporter on Dec. 26, 2007,Standard & Poor's Ratings Services raised its rating on Intertape's senior subordinated notes to 'CCC+' from 'CCC'.

INTERTAPE POLYMER: Enters Into $200 Million Senior Credit Facility------------------------------------------------------------------Intertape Polymer Group Inc. entered into a new $200 million senior secured credit facility consisting of a U.S. revolving credit facility in the amount of $185 million and a Canadian revolving credit facility in the amount of $15.0 million. International Polymer also obtained a letter of credit facility with a sublimit in the amount of $15.0 million.

The credit facility is secured by a first lien on the non-real estate assets of Intertape Polymer and substantially all of its subsidiaries. Upon funding on March 28, 2008, proceeds will be used to repay the $117.0 million currently outstanding under the company's existing credit facility.

The $200 million credit facility has been provided by a bank syndicate. The credit facility has a five year term and shall bear interest at either libor plus 1.75%, or the prime rate set by Bank of America plus 0.25%, as elected by International Polymer, through Sept. 30, 2008. Thereafter, the applicable margin shall adjust quarterly based on the then outstanding availability under the credit facility.

In connection with the repayment of the existing credit facility, the company terminated its two outstanding interest rate swap agreements at a cost of approximately $3.0 million . In addition, the company expects to record a non-cash charge of approximately $3.4 million in the first quarter of 2008 representing the accelerated amortization of the debt issue expenses relating to the termination of the existing credit facility.

The combination of the new financing and the $80.0 million reduction of debt during 2007 coupled with the decline in current Libor interest rates should result in a reduction of interest expense of approximately $ 8.4 million in 2008 compared to 2007.

The new facility has eliminated the financial ratio covenants set forth in the prior credit agreement with the exception of a fixed charge coverage ratio that becomes effective only when unused availability is less than $25.0 million. At closing, the company is well onside in this regard.

"We are pleased with the terms of our new credit facility and believe the successful refinancing of our credit facility is indicative of the progress made in improving the financial stability of the company," Victor DiTommaso, Intertape Polymer's chief financial officer, stated. "The company's ability to refinance this part of the debt in these difficult times reflects our strong cash flows and the confidence our lenders have in the company."

International Polymer currently has approximately $39.0 million of liquidity upon closing of its new credit facility. While International Polymer anticipates that its free cash flows will enable it to reduce its borrowings under the credit facility during 2008, the company retains the ability to obtain additional financing secured by all or a portion of its owned real estate in an amount of up to $35.0 million.

"The company anticipates that the refinancing of its credit facility, its ongoing efforts to reduce costs, the introduction of five new products and the realignment of sales personnel focusing on propriety and high margin niche markets, should significantly contribute to the financial results of the company in the second half of 2008," Melbourne F. Yull, executive director of International Polymer, said .

About Intertape Polymer Group

Based in Montreal, Quebec and Sarasota/Bradenton, Florida,Intertape Polymer Group Inc. (NYSE,ITP; TSX: ITP.TO) -- http://www.intertapepolymer.com/-- develops and manufactures specialized polyolefin plastic and paper-based packaging productsand complementary packaging systems for industrial and retail use. The company employs approximately 2,100 employees with operationsin 17 locations, including 13 manufacturing facilities in NorthAmerica and one in Europe.

* * *

As reported in the Troubled company Reporter on Dec. 26, 2007, Standard & Poor's Ratings Services raised its ratings on IntertapePolymer Group Inc. including its corporate credit rating to 'B'from 'B-'. The outlook is stable.

IVANHOE ENERGY: Management Expresses Going Concern Doubt-------------------------------------------------------- The management of Ivanhoe Energy, Inc., stated in its annual report for the year ended Dec. 31, 2007, filed with the Securities and Exchange Commission, that the company incurred a net loss of about $39,200,000 for the year ended Dec. 31, 2007, and as at Dec. 31, 2007, had an accumulated deficit of $159,990,000 and negative working capital of about $3,500,000.

The company stated it currently anticipates incurring substantial expenditures to further its capital investment programs and the company's cash flow from operating activities will not be sufficient to both satisfy its current obligations and meet the requirements of these capital investment programs. Recovery of capitalized costs related to potential projects is dependent upon finalizing definitive agreements for, and successful completion of, the various projects.

Management's plans include alliances or other arrangements with entities with the resources to support the company's projects as well as project financing, debt and mezzanine financing or the sale of equity securities in order to generate sufficient resources to assure continuation of the company's operations and achieve its capital investment objectives.

The company disclosed plans to utilize revenue from existing operations to fund the transition of the company to a heavy oil exploration, production and upgrading company, and non-heavy, oil-related investments in its portfolio will be leveraged or monetized to capture value and provide maximum return for the company.

The outcome of these matters cannot be predicted with certainty at this time and therefore the company said it may not be able to continue as a going concern.

Financials

The company posted a net loss of $39,207,000 on revenues of $33,517,000 for the year ended Dec. 31, 2007, as compared with a net loss of $25,492,000 on revenues of $48,100,000 in the prior year.

At Dec. 31, 2007, the company's balance sheet showed $236,916,000 in total assets, $39,629,000 in total liabilities, and $197,287,000 in stockholders' equity.

Bank Notes

In October 2006 the company obtained a bank loan for a $15 million Senior Secured Revolving/Term Credit Facility with an initial borrowing base of $8 million. The facility is for two years, the first 18 months in the form of a revolver and at the end of 18 months, the then outstanding amount will convert into a six-month amortizing loan.

Depending on the drawn amount, interest, at the company's option, will be either at 1.75% to 2.25%, above the bank's base rate or 2.75% to 3.25% over the London Inter-Bank Offered Rate.

The loan terms include the requirement for the company to enter into two-year commodity derivative contracts covering up to 14,700 Bbls per month of the company's production from its South Midway Property in California and Spraberry Property in West Texas.

As part of reestablishing the borrowing base amount, the company was required to enter into an additional commodity derivative contract.

The facility is secured by a mortgage on both of these properties. The company had made an initial $1.5 million draw of this facility in October 2006 and a subsequent draw of $3 million in September 2007.

In September 2007, the company obtained a bank loan for a$30 million Revolving/Term Credit Facility with an initial borrowing base of $10 million. The facility is a revolving facility with a three-year term with interest payable only during the term. Interest will be three-month LIBOR plus 3.75%.

The loan terms include the requirement for the company to enter into three-year commodity derivative contracts covering up to 18,000 Bbls per month of the company's production from its Dagang field in China. The facility is secured by a pledge of collections from the company's monthly oil sales in China and by a pledge of shares of the company's Chinese subsidiaries. The company had made an initial $7 million draw of this facility in September 2007 and a subsequent draw of $3 million in December 2007.

Promissory Notes

In February 2006, the company re-acquired the 40% working interest in the Dagang oil project not already owned by the company. Part of the consideration was the issuance by the company of a non-interest bearing, unsecured promissory note in the principal amount of around $7.4 million ($6.5 million after being discounted to net present value). The note is payable in 36 equal monthly installments commencing March 31, 2006.

During 2005 the company borrowed a total of $8 million under two separate convertible loan agreements with the same lender. In November 2005, the company entered into an agreement with the lender of these two convertible loans to repay $4 million of the loans by issuing 2,453,988 common shares of the company at $1.63 per share and to refinance the residual $4 million outstanding with a new $4 million promissory note due Nov. 23, 2007, and bearing interest, payable monthly, at a rate of 8% per annum.

The previously granted conversion rights attached to the two previously outstanding convertible loans were cancelled and the company issued to the lender 2,000,000 purchase warrants, each of which entitled the holder to purchase one common share at a price of $2.00 per share until November 2007. This note was repaid in April 2006.

Revolving Line of Credit

The company has a revolving credit facility for up to$1.25 million from a related party, repayable with interest at U.S. prime plus 3%. The company did not draw down any funds from this credit facility for the years ended Dec. 31, 2007, 2006 and 2005.

Ivanhoe Energy, Inc. (NasdaqCM: IVAN) -- http://www.ivanhoe-energy.com/ -- is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production. Core operations are in the United States and China, with business development opportunities worldwide.

KKR FINANCIAL: Avoids Default by Turning Over AAA-Rated Securities------------------------------------------------------------------KKR Financial Holdings LLC entered into an agreement with the holders of the secured liquidity notes, also known as commercial paper, issued by the two asset-backed conduits sponsored by KKRFinancial Corp. The agreement provides for the Noteholders to receive the collateral in the Facilities in exchange for terminating the outstanding secured liquidity notes without default in payment.

The company also signed a definitive agreement to sell a controlling interest in the REIT Subsidiary to Rock Capital 2 LLC,which sale is anticipated to be consummated in the second quarter of 2008.

Upon closing, this transaction will complete the company's conversion from a REIT to a limited liability company, a change that was approved by the company's shareholders in May 2007. Terms of the transaction were not disclosed.

"This agreement and the sale of our REIT subsidiary mark a constructive resolution to an issue created by the unprecedented dislocations in the credit markets," Saturnino Fanlo, chief executive officer of KKR Financial said. "Reflecting these conditions, our board of directors has approved an incremental charge of approximately $5.5 million, which we believe is an appropriate amount to resolve both the refinancing issuesrelating to the secured liquidity notes issued by the REIT's twoasset-backed conduits and complete the exit of our mortgage-related business."

"KKR Financial remains focused on building enterprise value by making opportunistic investments in corporate debt and continues to execute on our core strategy of underwriting and purchasing the attractively priced assets which are in abundance in the current environment," Mr. Fanlo continued. "Our balance sheet consists of over $8.5 billion in investments, more than 95% of which are in corporate debt investments issued by some of the largest companies in the world. The steps we have disclosed enhance our ability to take advantage of new opportunities for investment, capital-raising, and other initiatives consistent with our core strategy."

"The Noteholder Committee has been in discussions with KKR Financial over the past several weeks and appreciates KKR Financial's work to find a constructive resolution in this very challenging market," Ross Martin, a spokesperson for the Noteholders, said.

With respect to the agreement with the Noteholders:

-- All of the AAA-rated residential mortgage-backedsecurities funding the secured liquidity notes have been returned to the Noteholders in satisfaction of the notes.

-- Approximately $3.5 billion of secured liquidity notes and related RMBS will be removed from the company's balance sheet.

-- The company and its affiliates have been released from any future obligations or liabilities to the Noteholders.

When KKR Financial was formed, it was set up as a real estateinvestment trust and initially invested approximately 35% of itsequity capital in RMBS to satisfy REIT requirements. KKR Financial converted to a limited liability company structure in May 2007, and at that time discontinued investing in mortgage-related investments. In August of 2007, the company wrote off its entire investment exposure to mortgage-related investments financed by the secured liquidity notes, recording a charge for discontinued operations, and related contingencies, of approximately $243.7 million.

On Oct. 18, 2007, KKR Financial disclosed that the REIT Subsidiaryhad consummated a restructuring of its non-recourse asset-backed secured liquidity note facilities, extending the maturity date of the notes. KKR Financial had undertaken the restructuring because the widespread disruptions in the credit markets made the collateral for the notes, AAA-rated RMBS, difficult to refinance.

The company has since been in discussions with the Noteholders with a focus on determining a constructive path forward that would benefit all parties, and has concluded those discussions with this statement.

Exclusive of the $3.5 billion of secured liquidity notes and related RMBS which will be removed from the company's balance sheet, as of Dec. 31, 2007, the company's exposure to the residential mortgage market consists of approximately $337.6 million of RMBS, of which $300.1 million is ratedinvestment grade or higher and $37.5 million is rated below investment grade.

These securities do not include any assets that are collateralizedor backed by subprime or non-prime residential mortgage loans. In addition, the company does not have any off-balance sheet exposure to residential mortgage assets as the company does not hold any investments in off-balance sheet structures such as structured investment vehicles or collateralized debt obligations.

As reported in the Troubled Company Reporter on Feb. 21, 2008,KKR Financial Holdings LLC's second postponement of its repaymentof "billions of dollars" worth of mortgage-backed securities " is a further embarrassment for" Kohlberg Kravis Roberts & Co. LP.Founders Henry Kravis and George Roberts drew out from their personal pockets to help bail out KKR Financial Holdings from a $270 million debt obligation.

"Lazy Days' credit metrics and financial flexibility have deteriorated due to softer RV unit sales and precipitous margin declines over the last two years," said Mike Zuccaro, Analyst at Moody's. "Our expectation is for limited improvement in metrics over the near-to-intermediate term as a result of continued-soft economic conditions and slowing discretionary spending."

Lazy Days' operating margin, measured as EBIT gross profit, declined to nearly 17% for the LTM period ending Sept. 30, 2007, down from over 22% in 2005, while consolidated debt EBITDA has increased to over 8.5x (1.5x of which stems from treating Lazy Days' holding company preferred stock as 50% debt). Interest coverage (EBITDA Interest) declined to 1.1x. Moody's does not expect these metrics to significantly improve over the near term.

Mr. Zuccaro further added that, "the downgrades also reflect tenuous covenant compliance, which strains liquidity at a time when discretionary consumer spending is weakening and credit markets are difficult. Our belief is that the company may need to seek covenant relief if performance deteriorates any further."

Headquartered near Tampa, Florida, Lazy Days is the largest single site recreational vehicle retailer in the world. Its products include new and pre-owned Class A and Class C motor homes, conventional trailers and fifth-wheel trailers. Revenues approached $780 million for the LTM September 2007.

MANIS LUMBER: Taps Thomas Richardson to Give Collection Services----------------------------------------------------------------Manis Lumber Company and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Thomas D. Richardson and Brinson Askew Berry Seigler Richardson & Davis LLP to provide collection services.

The Debtors relate that they have an immediate need to employ the firm. Under Georgia law, the right of a materialmen to file a lien expires three months after goods are last provided on a job. Additionally, litigation must be commenced to collect debt within 12 months of the date the debt became due.

Thomas D. Richardson, a member of Thomas D. Richardson and Brinson Askew Berry Seigler Richarson & Davis LLP will act as the lead counsel for these services:

a) research property records for liens;

b) file liens;

c) make demands for payments;

d) prepare notes and security deeds;

e) file suits to perfect liens well as to collect on accounts, notes and bad checks; and

f) draft workout arrangements.

Prior to the bankruptcy filing, the Debtors employed the firm to provide collection services.

Mr. Richardson tells the Court that his professional bill is $250 per hour. Additionally, these professionals may also provide services in these hourly rates:

Headquartered in Rome, Georgia, Manis Lumber Co. dba Wheeler's manufactures and distributes building materials to professional home builders in from about 20 locations in Georgia, Alabama, andNorth Carolina. Materials distributed include engineered, framing, and pressure-treated lumber, hardware, roofing, and stair parts. They also make trusses and wall panels, and provide door and window assembly, well as installed sales.

The Debtor and its Debtor-affiliates filed for separate Chapter 11 petitions on Feb. 11, 2008, (Bankr. N.D. Ga. Case No.: 08-40398 thru 08-40417.) Manis Lumber Co's financial condition when it filed for protection from its creditors showed estimated assets of $1 million to $10 million and estimated debts of $10 million to $50 million.

MANIS LUMBER: Committee Wants Miller Canfield as Lead Counsel-------------------------------------------------------------The Official Committee for Unsecured Creditors in Manis Lumber Co. and its Debtor affiliates' Chapter 11 cases seeks permission from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Miller Canfield Paddock & Stone as lead counsel.

Miller Canfield will:

a) serve as lead counsel for the Committee;

b) provide the Committee with legal advice with respect to its duties and powers in all matters relating to the provisions of the Bankruptcy Code;

c) represent and appear on behalf of the Committee in matters occuring within the state of Georgia as requested;

d) represent and appear on behalf of the committee in matters related to the proceeding; and

e) perform other services as may be required and in the best interests of the unsecured creditors generally and the Committee.

Dale W. Baird, chairman of the Unsecured Creditors Committee relates that the lead counsel and local counsel will coordinate Court appearances to ensure that multiple lawyer appearances at hearings are limited to those circumstances warranting the same as evidentiary hearings, contested matter hearings and hearings with large dockets that include separate matters being handled by different counsel.

Headquartered in Rome, Georgia, Manis Lumber Co. dba Wheeler'smanufactures and distributes building materials to professionalhome builders in from about 20 locations in Georgia, Alabama, andNorth Carolina. Materials distributed include engineered,framing, and pressure-treated lumber, hardware, roofing, and stairparts. They also make trusses and wall panels, and provide doorand window assembly, well as installed sales.

MANIS LUMBER: Committee Taps James C. Frenzel PC as Co-Counsel--------------------------------------------------------------The Official Committee for Unsecured Creditors in Manis Lumber Co. and its Debtor affiliates' Chapter 11 cases seeks permission from the U.S. Bankruptcy Court for the Northern District of Georgia to employ James C. Frenzel PC as co-counsel for Miller Canfield Paddock & Stone PLC.

James Frenzel will:

a) serve as local counsel at the direction of lead counsel for the committee;

b) provide the Committee with legal advice with respect to its duties and powers in this proceeding in all matters relating to or affected by Georgia law;

c) represent and appear on behalf of the Committee in matters occuring within the state of Georgia as requested;

d) represent the committee on routine motions before the Court; and

e) perform other services as may be required and in the best interests of the unsecured creditors generally and the Committee.

Dale W. Baird, chairman of the Unsecured Creditors Committee, relates that the local counsel and lead counsel will coordinate Court appearances to ensure that multiple lawyer appearances at hearings are limited to those circumstances warranting the same as evidentiary hearings, contested matter hearings and hearings with large dockets that include separate matters being handled by different counsel.

Headquartered in Rome, Georgia, Manis Lumber Co. dba Wheeler'smanufactures and distributes building materials to professionalhome builders in from about 20 locations in Georgia, Alabama, andNorth Carolina. Materials distributed include engineered,framing, and pressure-treated lumber, hardware, roofing, and stairparts. They also make trusses and wall panels, and provide doorand window assembly, well as installed sales.

MAXUM PETROLEUM: Moody's Holds 'B2' Rating; Gives Negative Outlook------------------------------------------------------------------Moody's Investors Service affirmed Maxum Petroleum, Inc.'s B2 corporate family rating, but revised its ratings outlook to negative from stable and lowered the rating on the $155 million senior secured term loan to B3 from B2, per the Loss Given Default Methodology.

The outlook revision reflects Maxum's declining profitability due to challenging conditions in certain end-markets, temporary margin erosion, and the previously announced loss of a key distribution contract (TA Operating LLC terminated its diesel fuel distribution contract with Maxum in May 2007). The outlook revision also reflects weaker than expected free cash flow after a surge in working capital which caused free cash flow to be negative over the last several quarters.

Moody's believes these factors will apply ongoing pressure to Maxum's operating margins and volume growth over the near term. Moody's notes that management expects relatively flat diesel volume growth over the next several quarters. Given these challenges, Moody's is concerned over the company's ability to remain compliant with the financial covenants governing its credit facility.

The B2 corporate family rating reflects Maxum's high leverage, the low margins inherent in Maxum's core diesel marketing and distribution business, and longer term acquisition risk. The rating is supported by the company's economies of scale in procurement, low customer concentration, diversified end markets and long-tenured relationships with key suppliers. Given Maxum's current covenant hurdles combined with the financial sponsors stated strategy of growing the business through acquisitions, Moody's expects that the pending IPO will be necessary in order for Maxum to further execute its acquisition strategy.

The downgrade of the term loan to B3 (LGD4, 67%) from B2 (LGD4, 55%) reflects the increased proportion of revolving credit facility debt in the capital structure.

Ratings Affirmed:

-- Corporate Family Rating at B2;

-- Probability of Default Rating at B2.

Ratings Downgraded:

-- $155 million Senior Secured $155 million Term Loan B due 2013, to B3 (LGD4, 67%) from B2 (LGD4, 55%).

Maxum Petroleum, Inc., based in Old Greenwich, Connecticut, is a leading national marketer and distributor of diesel gasoline, lubricants, and related petroleum-based products.

MIGENIX INC: Posts CN$3.4 Million Net Loss in Qtr. Ended Jan. 31----------------------------------------------------------------MIGENIX Inc. reported a net loss of CN$3.4 million for the third quarter ended Jan. 31, 2008, compared with a net loss of CN$6.7 million in the same period ended Jan. 31, 2007.

For the three months ended Jan. 31, 2008, the decrease in the loss is principally attributable to a CN$2.8 million decrease in the write-down in intangible assets and a CN$600,000 decrease in research and development expenses.

During the three months ended Jan. 31, 2008, the company had no revenues, compared to research and development collaboration revenue of CN$19,000 for the three months ended Jan. 31, 2007. This research and development collaboration revenue is pursuant to the sale of omiganan drug substance to Cutanea Life Sciences.

At Jan. 31, 2008, the company's consolidated balance sheet showed CN$11.3 million in total assets, CN$7.8 million in total liabilities, and CN$3.5 million in total shareholders' equity.

Liquidity and Capital Resources

As of Jan. 31, 2008, the company had cash, cash equivalents and short-term investments of CN$7.9 million and the company's net working capital was CN$7.1 million, compared to net working capital of CN$14.6 million at April 30, 2007. The CN$7.5 million decrease in net working capital from April 30, 2007, is primarily attributable to the cash loss of CN$7.0 million for the nine months ended Jan. 31, 2008.

Going Concern Doubt

MIGENIX Inc. has incurred significant losses since inception and as at Jan. 31, 2008, had an accumulated deficit of CN$134.2 million. Management has been able, thus far, to finance its cash requirements primarily from equity financings and payments from licensing agreements. Management believes these conditions raise substantial doubt about the company's ability to continue as a going concern.

About MIGENIX Inc.

Headquartered in Vancouver, B.C., Canada, with US operations inSan Diego, MIGENIX Inc. (Toronto Stock Exchange: MGI) --http://www.migenix.com/-- is a drug development company committed to advancing therapy, improving health, and enriching life bydeveloping and commercializing drugs primarily in the area ofinfectious diseases. The company's clinical programs include drugcandidates for the treatment of chronic hepatitis C infections,the prevention of catheter-related infections and the treatment ofdermatological diseases.

Type of Business: The Debtor is a wireless service provider that offers pay-as-you-go wireless voice and data communications services using a national providers digital network. See http://www.movidacelular.com

NEW CENTURY: Examiner Suggests Actions Against Officers & KMPG LLP------------------------------------------------------------------The 581-page final report of Michael J. Missal -- the appointed examiner for New Century Financial Corp. and its debtor-affiliates -- on his investigation on the accounting and financial statement irregularities, errors or misstatements of the Debtors have been unsealed.

The Final Report was made available to the public on March 26, 2008, following the Official Committee's withdrawal of its motion to maintain the Final Report under seal. The Final Report was filed February 29, 2008, but only the Committee, the U.S. Trustee and the Debtors were provided copies of the document.

In his findings, Mr. Missal noted that the subprime mortgage market collapsed with great speed and unprecedented severity, resulting to financial difficulties among subprime lenders.

Taking the recent subprime crisis into consideration, Mr. Missal concludes that New Century engaged in a number of significant improper and imprudent practices related to its loan originations, operations, accounting and financial reporting processes. The Examiner also says that KPMG LLP contributed to certain accounting and financial reporting deficiencies by enabling them to persist and precipitating New Century's departures from applicable accounting standards.

Actions Against KPMG and the Debtors' Former Officers

The Examiner believes that several causes of action may be available to the estates, including an action against KPMG for professional negligence and negligent misrepresentation based on KPMG's breach of its professional standard of care in carrying out its audit and reviews of New Century's financial statements and its related systems of internal controls.

As required by the order issued by the U.S. Bankruptcy Court for the District of Delaware setting forth his appointment as Examiner, Mr. Missal was tasked to identify any potential claims that the bankruptcy estates may have arising out of any improper conduct.

Mr. Missal also says that the estates may assert action against some former New Century officers to recover certain of the bonuses paid to them in 2005 and 2006, which were tied to the company's incorrect financial statements. He avers the two causes of action could seek "millions of dollars" in recoveries.

The Examiner relates that officers and directors owed New Century fiduciary duties of loyalty, due care, good faith and candid disclosure. He has assessed the conduct of certain former and current officers and directors to determine whether their actions or inactions may give rise to additional potential causes of action on behalf of the estates.

Breach of fiduciary duty claims against officers and directors have strong defenses to overcome, the Examiner states.

The Examiner did not include, in the Final Report, a detailed discussion of those potential claims. The Examiner, however, outlined in the Final Report some potential areas of concern about the conduct and level of care exhibited by the Officers and Directors.

Loan Originations Issues

New Century's revenues, assets and operations were directly affected by its subprime lending policies and practices. Hence, the Examiner holds it is pertinent to New Century's accounting and financial reporting processes to examine certain issues related to the company's loan originations, which include:

(i) New Century's "brazen obsession" with increasing loan originations, without due regard to the risks associated with that business strategy;

(ii) The increasingly risky nature of New Century's loan originations, which New Century layered on the risks of loan products upon the risks of loose underwriting standards in its loan originations to high risk borrowers;

(iii) New Century's frequent exceptions to its underwriting guidelines for borrowers, who might not otherwise qualify for a particular loan;

(iv) Senior management's turning a blind eye to the increasing risks of New Century's loan originations, and did not take appropriate steps to manage those risks; and

(v) Senior management's continued feeding on the wave of investor demands without anticipating the inevitable requirement to repurchase an increasing number of bad loans, resulting from the steady increase in early payment defaults on loans originated by New Century.

Accounting and KPMG Issues

The Examiner also identifies these critical issues that include New Century's improper accounting practices and KPMG's conduct, among other things:

-- several claims that KPMG recommended improper changes to the repurchase reserve calculation that were made in the second and third quarters of 2006;

-- failure to value properly residual interests that the Company held in off-balance sheet securitizations, which represented hundreds of millions of dollars on its balance sheet;

-- problematic accounting issues in 2005 and 2006 related to New Century's allowance for loan losses, mortgage servicing rights, deferral and amortization of loan origination fees and costs, hedge accounting, and the $77,700,000 of goodwill that New Century recorded in connection with its acquisition of the loan origination platform of the prime mortgage retail division of RBC Mortgage Company;

-- accounting practices and methodologies that were inconsistent with the Generally Accepted Accounting Principles or otherwise subject to criticism by KPMG;

-- troubling and puzzling conduct of KPMG, on which KPMG signed off on a New Century repurchase reserve based on the estimate that the Company would need to repurchase $70,000,000 of the loans sold in the fourth quarter of 2005, while KPMG's workpapers showed that the Company needs to purchase was $140,000,000 of loans;

-- New Century made false and misleading statements in its public filings, press releases and other communications;

-- an unhealthy friction between the Board of Directors and Senior Management at a time when the business challenges would have greatly benefited from a strong collaborative relationship; and

-- New Century's Internal Audit Department was deficient in a number of ways, including not giving adequate attention to kickouts and repurchase claims, and not thoroughly assessing corporate or operational risks.

As a consequence to its accounting failures, New Century understated its repurchase reserve by as much as 1,000% in the third quarter of 2006, reported a profit of $63,500,000 in the third quarter of 2006, when it should have reported a loss and should have announced earnings below expectations, the Examiner points out. He states that KPMG contributed to these failings in critical ways because KPMG failed to question or test certain important assumptions in a rigorous manner, among other inadequacies.

"The KPMG engagement team acquiesced in New Century's departures from prescribed accounting methodologies and often resisted or ignored valid recommendations from specialists within KPMG," Mr. Missal tells the Court.

The Examiner further notes that while New Century had an active Audit Committee, it failed to focus on certain issues of crucial importance to the Company, like loan quality issues, ensuring a sustained analysis by Management of entity-wide risk, key operational risks and proper supervision of New Century's Internal Audit Department. Had the Audit Committee addressed the issues more effectively and with more urgency, some of the accounting and operational failures may have been avoided, he continues.

The Washington Post reports that KPMG spokesman Dan Ginsburg, said "it's not unusual for the work of an auditor to be reviewed by a bankruptcy examiner. We're confident that any objective review will confirm that our work was performed in accordance with professional standards."

Mr. Ginsburg added, according to the Orange County Register, "We strongly disagree with the report's conclusions concerning KPMG. We believe that an objective review of the facts and circumstances will affirm our position."

About New Century

Founded in 1995, Irvine, Calif.-based New Century FinancialCorporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowersnationwide through its operating subsidiaries, New CenturyMortgage Corporation and Home123 Corporation. The company offersa broad range of mortgage products designed to meet the needs ofall borrowers.

The PDR downgrade reflects the heightened probability of default given the extremely limited cushion for the next few quarters under Nexstar Broadcasting Inc.'s senior secured credit facility covenants and correspondingly weak liquidity profile. The PDR would otherwise be lowered further were it not for S&P's belief that the company will likely be able to get a waiver and an amendment in the event that it does breach its financial maintenance covenants and is thereby subject to a technical default. The developing outlook incorporates the uncertainty surrounding the covenant compliance situation.

The rating upgrades for the senior secured credit facilities reflect their senior-most position in the capital structure and Moody's shift to an above-average recovery expectation for the consolidated enterprise (and correspondingly lower LGD rates for the secured debt) in an event of default scenario based on the company's reasonably sound business profile and moderate perceived loan-to-value, and notwithstanding near-term liquidity concerns.

The senior discount notes and the senior subordinated notes are being downgraded to reflect the fact that they fully bear the incremental expected credit loss associated with the heightened probability of default (and notwithstanding some modest improvement in projected recovery rates based on the revised above-average family recovery rate) due entirely to their junior ranking in the consolidated capital structure.

The SGL-4 speculative grade liquidity rating is significantly influenced by the company's precarious ability to remain in compliance with its financial maintenance covenants, and a modest perceived ability to quickly monetize non-core assets if needed. These weaknesses are balanced by the company's modestly positive free cash flow (prior to satisfaction of the expected paydown related to the high yield discount obligation, using cash drawn under the revolver) as forecast, which is supplemented by excess cash balances and revolver availability (subject to ongoing covenant compliance).

Nexstar's ratings reflect its high debt-to-EBITDA leverage ratio of 7.9x (for the fiscal year ended Dec. 31, 2007) and limited cushion under the company's secured credit facility covenants. The ratings also incorporate the inherent cyclicality of the advertising business and the increasing business risk associated with declining trends in broadcast television audiences and increasing cross-media competition for advertising dollars.

Nexstar's ratings are supported by the company's diversified geographic footprint, continued local market focus, and limited competition in most markets. The company also benefits from diverse network affiliations and its local service agreements with Mission Broadcasting that expand programming coverage.

Nexstar Broadcasting Group, Inc., based in Irving, Texas, owns and operates or provides services to 50 television stations in 29 markets. The company recorded revenue of approximately $267 million during year ended Dec. 31, 2007.

The affirmations, affecting approximately $87 million of outstanding certificates, reflect a stable relationship between credit enhancement and future loss expectations. The negative rating actions, affecting approximately $1.5 million of outstanding certificates, reflect deterioration in the relationship between future loss expectations and credit support levels.

NOVELIS INC: S&P Changes Outlook to Stable; Confirms 'BB-' Rating-----------------------------------------------------------------Standard & Poor's Ratings Services revised its outlook on Atlanta-based Novelis Inc. to stable from negative. At the same time, S&P affirmed its ratings, including the 'BB-' long-term corporate credit rating, on Novelis. Standard & Poor's also withdrew its 'B-2' short-term counterparty credit rating on the company, due to lack of market need.

"The outlook revision to stable factors in an expected improvement in Novelis' financial performance, the parent-subsidiary link between Hindalco and Novelis, and expected support from the parent to the subsidiary entity," said Standard & Poor's credit analyst Donald Marleau. "As the credit quality of Novelis and Hindalco are linked to some extent, any change in the credit quality of Hindalco would have a similar effect on the Novelis ratings in the short-to-medium term," Mr. Marleau added.

The ratings on Novelis reflect the company's aggressive financial risk profile, characterized by a heavy debt burden, poor cash generation, and unstable margins. Alleviating these weaknesses are the company's leading position in the global aluminum rolled products market, and extensive geographic and product diversity. The ratings also reflect the support of its parent, Hindalco Industries Ltd., for which Novelis is a long-term, strategically important investment. Standard & Poor's believes that this strategic importance provides good incentive for Hindalco to support its $3.5 billion investment.

Notwithstanding poor results in the last two years, Novelis' weak financial performance should improve through 2008 despite the economic slowdown in North America and Europe, as the company improves its ability to manage the operating margin and liquidity risks associated with can-sheet price ceilings and strong aluminum prices. Hindalco acquired Novelis in May 2007, only two years after Novelis was spun out of integrated aluminum producer Alcan Inc. (BBB+/Watch Pos/A-2).

The outlook is stable. The outlook factors in an expected improvement in Novelis' financial performance, the parent-subsidiary link between Hindalco and Novelis, and expected support from the parent to the subsidiary entity. Nevertheless, Novelis' standalone credit quality will continue to face pressure from debt that is persistently high for the rating, as well as slowing core markets.

Downward pressure on the Novelis ratings is likely if the combination of hedging strategies and changes to its sales contracts does not effectively reduce its exposure to commodity metals prices in the next 12-18 months, such that cash flow stability and the debt reduction pace do not improve. With some debt reduction in the next several years, the company's capital structure could better correspond to its satisfactory business risk, thereby putting upward pressure on the ratings.

POWERMATE HOLDING: Court OKs Retention of Kurtzon as Claims Agent-----------------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware authorizes Powermate Holding Corporation and its debtor-affiliates to retain Kurtzman Carson Consulting LLC as its notice, claims and balloting agent.

Kurtzman Carson Consulting LLC will:

a. assist the Debtors with all required notices in this Chapter 11 case including:

1. notice of commencement of these chapter 11 cases and the initial meeting of creditors under section 341(a) of the Bankruptcy Code;

2. notice of claims bar dates;

3. notice of objections to claims;

4. notices of hearings on the Debtors' disclosurestatement and confirmation of the Debtors' chapter 11 plan, and;

5. such other miscellaneous notices as the Debtors orthe Court may deem necessary or appropriate for the orderly administration of these chapter 11 cases.

b. within five days of the service of a particular notice, file with the Clerk's Office a certificate or affidavit of service that includes:

1. a copy of the notice served;

2. a list of persons upon whom the notice was served along with their addresses, and;

3. the date and manner of service.

c. receive, examine and maintain copies of all proofs of claim and proofs of interest filed.

d. maintain official claims registers in each of the Debtors' cases by docketing all proofs of claim and proofs of interest in the applicable claims database that includes these information for each claim or interest asserted:

1. the name and address of the claimant or interest holder and any agent, if the proof of claim or interest was filed by an agent;

2. the date the proof of claim or proof of interest was received by the agent or the Court;

3. the claim number assigned to the proof of claim or interest;

4. the asserted amount and classification of the claim, and;

5. the applicable Debtor against which the claim or interest is asserted.

e. implement necessary security measures to ensure the completeness and integrity of the claims registers.

f. transmit to the clerk's office a copy of the claims registers on a weekly basis, unless requested by the clerk's office on a more or less frequent basis.

g. maintain an up-to-date mailing list for all entities that have filed proofs of claim or interest and make the list available upon request to the clerk's office or any party in interest.

h. provide access to the public for examination of copies of the proofs of claim or proofs of interest filed in the case without charge during regular business hours.

i. record all transfers of claims pursuant to Bankruptcy Rule 3001(e) and provide notice of the transfers.

l. provide such other claims processing, noticing and related administrative services as may be requested from time to time by the Debtors.

m. oversee the distribution of the applicable solicitation material to each holder of a claim against or interest in the Debtor.

n. respond to mechanical and technical distribution and solicitation inquiries.

o. receive, review and tabulate the ballots cast adn make determinations with respect to each ballot as to its timeliness, compliance with the Bankruptcy Code, Bankruptcy Rules and Procedures ordered by the Court, subject to its review and determination.

p. certify the results of the balloting to the Court.

q. perform related plan-solicitation services as may be requested by the Debtors.

The Debtors and the firm have agreed that Kurtzman will invoice the Debtor's monthly for services rendered to the Debtors during the preceding month. Under the agreement, the Debtors have paid the firm a retainer of $50,000, which may be applied immediately in the satisfaction of the Debtor's obligations.

Kurtzman Carson Consulting LLC believes it neither holds nor represents any interest adverse to the Debtors' or its estates and is a disinterested person as defined in section 101(14) of the Bankruptcy Code.

About Powermate Holding

Headquartered in Aurora, Illinois, Powermate Holding Corp. --http://www.powermate.com/-- anufacturers of portable and home standby generators, air compressors, and pressure washers. Thecompany and two of its affiliates filed for Chapter 11 protectionon March 17, 2008 (Bankr. D. Del. Lead Case No.08-10498). Kenneth J. Enos, Esq.. and Michael R. Nestor, Esq., at Young,Conaway, Stargatt & Taylor, represent the Debtors. No OfficialCommittee of Unsecured Creditors has been appointed in thesecases. When the Debtors filed for protection against theircreditors, they listed assets and debt between $50 million to$100 million.

This is the first meeting of creditors required under Section341(a) of the Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend. ThisMeeting of Creditors offers the one opportunity in a bankruptcyproceeding for creditors to question a responsible office of theDebtor under oath about the company's financial affairs andoperations that would be of interest to the general body ofcreditors.

Headquartered in Aurora, Illinois, Powermate Holding Corp. --http://www.powermate.com/-- anufacturers of portable and home standby generators, air compressors, and pressure washers. Thecompany and two of its affiliates filed for Chapter 11 protectionon March 17, 2008 (Bankr. D. Del. Lead Case No.08-10498). Kenneth J. Enos, Esq.. and Michael R. Nestor, Esq., at Young,Conaway, Stargatt & Taylor, represent the Debtors. No OfficialCommittee of Unsecured Creditors has been appointed in thesecases. When the Debtors filed for protection against theircreditors, they listed assets and debt between $50 million to$100 million.

QUEBECOR WORLD: Court OKs Prepetition Payments to 376 Managers--------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New York authorized Quebecor World Inc. and its debtor-affiliates to pay the accrued prepetition payments due under their Management Incentive Compensation Plan and Plant Based Incentive Plan.

The Debtors sought the Court's permission to pay 376 managers prepetition payments due under certain incentive plans for the second half of 2007, which will become due and owing on March 31, 2008: Prepetition Plan No. of Employees Amount Due ---- ----------------- ---------- MICP 135 $2,627,776 PBIP 241 $1,949,760

The Court, however, has not yet given the Debtors permission to continue their Management Incentive Compensation Plan and the Plant Based Incentive Plan postpetition and in the ordinary course of business. The Court will consider the request in the next omnibus hearing.

As reported in the Troubled Company Reporter on March 24, 2008, according to Michael Canning, Esq. at Arnold & Porter LLP, in NewYork, the Debtors maintain two annual incentive plans for itsmanagement employees: the Management Incentive Compensation Planand the Plant Based Incentive Plan. Mr. Canning notes that theseIncentive Plans are integral components of how the Debtors rewardand encourage their important managerial employees.

About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well asprint solutions to retailers, branded goods companies, catalogersand to publishers of magazines, books and other printed media. Ithas 127 printing and related facilities located in North America,Europe, Latin America and Asia. In the United States, it has 82facilities in 30 states, and is engaged in the printing of books,magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which itoffers a mix of printed products and related value-added servicesto the Canadian market and internationally.

The company is an independent commercial printer in Europe with19 facilities, operating in Austria, Belgium, Finland, France,Spain, Sweden, Switzerland and the United Kingdom. In March 2007,it sold its facility in Lille, France. Quebecor World (USA) Inc.is its wholly owned subsidiary.

Quebecor World and 53 of its subsidiaries, including those inCanada, filed a petition under the Companies' CreditorsArrangement Act before the Superior Court of Quebec, CommercialDivision, in Montreal, Canada, on Jan. 20, 2008. The HonorableJustice Robert Mongeon oversees the CCAA case. Francois-DavidPare, Esq., at Ogilvy Renault, LLP, represents the Company in theCCAA case. Ernst & Young Inc. was appointed as Monitor.

Based in Corby, Northamptonshire, Quebecor World PLC --http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines,catalogues and specialty print products for marketing andadvertising campaigns. The company employs around 290 people.Quebecor PLC was placed into administration with Ian Best andDavid Duggins of Ernst & Young LLP appointed as jointadministrators effective Jan. 28, 2008.

The company has until May 20, 2008, to file a plan ofreorganization in the Chapter 11 case. The Debtors' CCAA stay hasbeen extended to May 12, 2008. (Quebecor World Bankruptcy News,Issue No. 10; Bankruptcy Creditors' Service, Inc.,http://bankrupt.com/newsstand/or 215/945-7000)

* * *

As reported in the Troubled Company Reporter on Feb. 13, 2008,Moody's Investors Service assigned a Ba2 rating to the$400 million super priority senior secured revolving term loanfacility of Quebecor World Inc. as a Debtor-in-Possession. Therelated $600 million super priority senior secured term loan wasrated Ba3 (together, the DIP facilities). The RTL's better assetvalue coverage relative to the TL accounts for the ratings'differential.

QUEBECOR WORLD: Silvex Seeks Recovery from Insurance Claims-----------------------------------------------------------Silvex Designs, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to lift the automatic stay to allow it to prosecute its lawsuit against Quebecor World Inc. and its affiliates, in order to recover from the Debtors' insurance carrier claims for damages, through trial or settlement.

According to Beata Shapiro, Esq., at Wilson, Elser, Moskowitz, Edelman & Dicker LLP, in Stamford, Connecticut, on Aug. 29, 2006, Silvex retained Quebecor World Logistics, Inc., doing business as QW Express, to transport a consignment of 4,009 pounds of sterling silver jewelry from Silvex's office in New York to a trade show in Arizona. Silvex claims that 1,000 pounds of the goods, amounting to $332,872, were missing upon their consignment in Arizona.

The Debtors maintained an insurance policy with Navigators Ins. Co. through Navigators Management (UK) Ltd, which was effective at the time the goods were lost, and which policy affords coverage for Silvex's damages, Ms. Shapiro says.

Silvex instituted an action in the U.S. District Court for the Southern District of New York on May 11, 2007, against QW Express and other parties involved in the shipment.

About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well asprint solutions to retailers, branded goods companies, catalogersand to publishers of magazines, books and other printed media. Ithas 127 printing and related facilities located in North America,Europe, Latin America and Asia. In the United States, it has 82facilities in 30 states, and is engaged in the printing of books,magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which itoffers a mix of printed products and related value-added servicesto the Canadian market and internationally.

The company is an independent commercial printer in Europe with19 facilities, operating in Austria, Belgium, Finland, France,Spain, Sweden, Switzerland and the United Kingdom. In March 2007,it sold its facility in Lille, France. Quebecor World (USA) Inc.is its wholly owned subsidiary.

Quebecor World and 53 of its subsidiaries, including those inCanada, filed a petition under the Companies' CreditorsArrangement Act before the Superior Court of Quebec, CommercialDivision, in Montreal, Canada, on Jan. 20, 2008. The HonorableJustice Robert Mongeon oversees the CCAA case. Francois-DavidPare, Esq., at Ogilvy Renault, LLP, represents the Company in theCCAA case. Ernst & Young Inc. was appointed as Monitor.

Based in Corby, Northamptonshire, Quebecor World PLC --http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines,catalogues and specialty print products for marketing andadvertising campaigns. The company employs around 290 people.Quebecor PLC was placed into administration with Ian Best andDavid Duggins of Ernst & Young LLP appointed as jointadministrators effective Jan. 28, 2008.

The company has until May 20, 2008, to file a plan ofreorganization in the Chapter 11 case. The Debtors' CCAA stay hasbeen extended to May 12, 2008. (Quebecor World Bankruptcy News,Issue No. 10; Bankruptcy Creditors' Service, Inc.,http://bankrupt.com/newsstand/or 215/945-7000)

* * *

As reported in the Troubled Company Reporter on Feb. 13, 2008,Moody's Investors Service assigned a Ba2 rating to the$400 million super priority senior secured revolving term loanfacility of Quebecor World Inc. as a Debtor-in-Possession. Therelated $600 million super priority senior secured term loan wasrated Ba3 (together, the DIP facilities). The RTL's better assetvalue coverage relative to the TL accounts for the ratings'differential.

QUEBECOR WORLD: Wants to Employ Three Real Estate Consultants-------------------------------------------------------------Quebecor World Inc. and its affiliates seek the U.S. BankruptcyCourt for the Southern District of New York's authority to employ (a) Prime Locations, LLC, (b) George Comfort & Sons, Inc. and (c) The CORE Network for various real estate consulting services, nunc pro tunc to March 1, 2008.

CORE is a non-profit national network of approximately 40 real estate firms and approximately 1,000 individual brokers and consultants. CORE is experienced in representing clients in numerous aspects of chapter 11 business operations and is well qualified to represent the Debtors in the Chapter 11 cases. CORE's national reach enables it to provide services to clients with real estate interests across the United States.

Comfort is a national real estate firm, with extensive knowledge of the Debtors' real estate portfolio and vast experience in maximizing value and minimizing liabilities related to leased and owned properties.

Under Work Authorization #1, the RE Consultants will prepare a Real Market Valuation report setting forth the market rent or market value for 96 sites identified by the Debtors. The Valuation Services will include, as appropriate:

(a) review of all applicable leases, lease summaries, charts, deeds, title documents and related documents provided by the Debtors;

(b) communications with real estate professionals and retail operators knowledgeable with respect to the locations of the Debtors' sites;

(c) determination of the market value and market rent for each site; and

(d) determination of the marketability, financing and disposition potential of the sites based on an analysis of the market and documents provided by the Debtors.

With respect to Work Authorization #2, the services to be provided by the RE Consultants relate to lease negotiations and modifications, and, to the extent advisable, arranging for sales of certain of the Debtors' leasehold and fee interests. The Restructuring Services will include:

The Debtors have determined that the joint retention of CORE, Prime and Comfort will enable them to undertake a restructuring of their real estate interests quickly and efficiently, and that access to more than one professional firm will increase the speed with which the Debtors can undertake an analysis of their real estate interests and begin to make decisions regarding restructuring or disposing of certain assets.

According to Michael Canning, Esq., at Arnold & Porter LLP, in New York, the need for multiple real estate advisors arises in large part from the fact that the Debtors have a large number of geographically dispersed real estate holdings, and the Debtors believe that there is little risk of duplication of effort by CORE, Prime and Comfort. Nevertheless, the Debtors are mindful of concerns with respect to duplication of efforts when multiple professionals are retained. In this regard, the Debtors, CORE, Prime and Comfort have agreed to communicate regularly and work closely to ensure that no such duplication occurs and, in all events, the Debtors will only be responsible for one fee in connection with each transaction.

The Debtors and the RE Consultants have negotiated separate compensation arrangements for each of the Valuation Services and the Restructuring Services.

For the Valuation Services, the RE Consultants will charge the Debtors $250 for each of the 96 locations to be the subject of the Real Market Valuation report, for a total fee of $24,000. This fee will be a comprehensive fee for the Valuation Services, with the exception of any travel expenses incurred by the RE Consultants on account of visits to the Debtors at their offices or elsewhere at the Debtors' request.

As compensation for the Restructuring Services, the RE Consultants will receive fees based on value realized from successful transactions:

(a) 5% of the first $200,000 in savings realized from each lease renegotiation and 4% of any savings in excess of $200,000 realized from the lease renegotiation;

(b) 5% of the first $200,000 in cash proceeds realized from the sale of a leasehold interest and 4% of any cash proceeds in excess of $200,000 realized from the sale of the leasehold interest;

(c) 5% of the first $200,000 of gross cash proceeds realized from the sale of a fee interest and 4% of any gross cash proceeds in excess of $200,000 realized from the sale of the fee interest; and

(d) a flat fee of $2,500 if the RE Consultants are successful in arranging, at the express request, and to the satisfaction of, the Debtors, a transaction where the additional value is unquantifiable, such as an option to purchase, extend or terminate a lease.

The RE Consultants will not be entitled to any fee in the event that the Debtors reject a leasehold interest or do not realize savings or cash proceeds. The Debtors believe that the fee structure will be beneficial to their estates because the ability of the RE Consultants to earn a fee of 4% on all savings realized above $200,000 creates a strong incentive for the RE Consultants' professionals to maximize the Debtors' savings in each restructuring or asset disposition.

With respect to both the Valuation Services and the Restructuring Services, the fees are aggregate fees payable to the RE Consultants collectively. In no event will multiple fees be payable to more than one of the RE Consultants on account of a single valuation or restructuring transaction.

The parties do not presently contemplate that the RE Consultants' professionals will be compensated on an hourly basis, other than in the event it becomes necessary for one of the RE Consultants' professionals to provide expert testimony in connection with the RE Consultants' services to the Debtors. To the extent that hourly compensation is applicable, the RE Consultants will be entitled to receive compensation from the Debtors' bankruptcy estates at these rates:

According to Mr. Canning, CORE and Dana Pike, senior vice president of Comfort, have both performed services for the Debtors in the past. Mr. Pike holds a longstanding relationship with the Debtors and is familiar with their business operations and real estate interests, Mr. Canning adds.

Mr. Canning assures the Court that none of the RE Consultants hold any claim against the Debtors on account of any unpaid fees or unreimbursed expenses. Prime, Comfort and CORE are each a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code as modified by Section 1107(b), Mr. Canning asserts. The RE Consultants do not hold or represent any interest adverse to the estate that would impair their ability to objectively perform professional services for the Debtors in accordance with Section 327, Mr. Canning says.

About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well asprint solutions to retailers, branded goods companies, catalogersand to publishers of magazines, books and other printed media. Ithas 127 printing and related facilities located in North America,Europe, Latin America and Asia. In the United States, it has 82facilities in 30 states, and is engaged in the printing of books,magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which itoffers a mix of printed products and related value-added servicesto the Canadian market and internationally.

The company is an independent commercial printer in Europe with19 facilities, operating in Austria, Belgium, Finland, France,Spain, Sweden, Switzerland and the United Kingdom. In March 2007,it sold its facility in Lille, France. Quebecor World (USA) Inc.is its wholly owned subsidiary.

Quebecor World and 53 of its subsidiaries, including those inCanada, filed a petition under the Companies' CreditorsArrangement Act before the Superior Court of Quebec, CommercialDivision, in Montreal, Canada, on Jan. 20, 2008. The HonorableJustice Robert Mongeon oversees the CCAA case. Francois-DavidPare, Esq., at Ogilvy Renault, LLP, represents the Company in theCCAA case. Ernst & Young Inc. was appointed as Monitor.

Based in Corby, Northamptonshire, Quebecor World PLC --http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines,catalogues and specialty print products for marketing andadvertising campaigns. The company employs around 290 people.Quebecor PLC was placed into administration with Ian Best andDavid Duggins of Ernst & Young LLP appointed as jointadministrators effective Jan. 28, 2008.

The company has until May 20, 2008, to file a plan ofreorganization in the Chapter 11 case. The Debtors' CCAA stay hasbeen extended to May 12, 2008. (Quebecor World Bankruptcy News,Issue No. 10; Bankruptcy Creditors' Service, Inc.,http://bankrupt.com/newsstand/or 215/945-7000)

* * *

As reported in the Troubled Company Reporter on Feb. 13, 2008,Moody's Investors Service assigned a Ba2 rating to the$400 million super priority senior secured revolving term loanfacility of Quebecor World Inc. as a Debtor-in-Possession. Therelated $600 million super priority senior secured term loan wasrated Ba3 (together, the DIP facilities). The RTL's better assetvalue coverage relative to the TL accounts for the ratings'differential.

QUEBECOR WORLD: Shutting Down Magazine Facility in Magog, Quebec----------------------------------------------------------------Quebecor World Inc. is closing its Magog, Quebec facility. The Magog facility produced magazines and retail inserts for the U.S. and Canadian markets. The closure is part of the company's global retooling and restructuring program begun three years ago. The program which is being completed in 2008 is designed to reducecosts and improve productivity across the company's global platform by consolidating volume in larger and more efficient facilities. This program has included investing in and deploying state-of-the-art presses and accompanying technology in fewer but larger facilities to better service customers and to improve performance.

The closure will result in the loss of approximately 300 full timepositions. Currently 200 full time employees are on temporary layoff which will be made permanent. All employees including those on lay off will receive a minimum of 16 weeks of indemnity as provided for by the Quebec Labour Standards. Quebecor World will help its employees find new jobs by providing them with outplacement services and the company will work with the union and the appropriate government agencies to assist inretraining initiatives.

The company will begin closing down the facility immediately. Currently the facility is only operating at 20% of its capacity due to the reduced demand at this time of the year. The Magog facility began operations in 1971. Quebecor World employs approximately 2,000 employees at six facilities in Quebec, printing magazines, catalogs, retail inserts and directories.

About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well asprint solutions to retailers, branded goods companies, catalogersand to publishers of magazines, books and other printed media. Ithas 127 printing and related facilities located in North America,Europe, Latin America and Asia. In the United States, it has 82facilities in 30 states, and is engaged in the printing of books,magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which itoffers a mix of printed products and related value-added servicesto the Canadian market and internationally.

The company is an independent commercial printer in Europe with19 facilities, operating in Austria, Belgium, Finland, France,Spain, Sweden, Switzerland and the United Kingdom. In March 2007,it sold its facility in Lille, France. Quebecor World (USA) Inc.is its wholly owned subsidiary.

Quebecor World and 53 of its subsidiaries, including those inCanada, filed a petition under the Companies' CreditorsArrangement Act before the Superior Court of Quebec, CommercialDivision, in Montreal, Canada, on Jan. 20, 2008. The HonorableJustice Robert Mongeon oversees the CCAA case. Francois-DavidPare, Esq., at Ogilvy Renault, LLP, represents the Company in theCCAA case. Ernst & Young Inc. was appointed as Monitor.

Based in Corby, Northamptonshire, Quebecor World PLC --http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines,catalogues and specialty print products for marketing andadvertising campaigns. The company employs around 290 people.Quebecor PLC was placed into administration with Ian Best andDavid Duggins of Ernst & Young LLP appointed as jointadministrators effective Jan. 28, 2008.

The company has until May 20, 2008, to file a plan ofreorganization in the Chapter 11 case. The Debtors' CCAA stay hasbeen extended to May 12, 2008. (Quebecor World Bankruptcy News,; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)

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As reported in the Troubled Company Reporter on Feb. 13, 2008,Moody's Investors Service assigned a Ba2 rating to the$400 million super priority senior secured revolving term loanfacility of Quebecor World Inc. as a Debtor-in-Possession. Therelated $600 million super priority senior secured term loan wasrated Ba3 (together, the DIP facilities). The RTL's better assetvalue coverage relative to the TL accounts for the ratings'differential.

"The outlook revision reflects decelerating market fundamentals in the company's core Manhattan office market, which reduces the potential for an upgrade given our expectation that Reckson's key credit metrics are unlikely to improve in the near term," said credit analyst Elizabeth Campbell. "The rating on the company continues to reflect the implied credit quality of its unrated parent, SL Green Realty Corp., and the ratings on Reckson's publicly rated unsecured bonds, including the exchangeable debentures, remain one notch below the issuer credit rating, reflecting their subordination to secured creditors at SL Green."

SL Green's portfolio-recycling activities of the past few years have improved asset quality and resulted in a more defensible portfolio. A moderately leveraged balance sheet and manageable lease expirations should support stable cash flows despite S&P's expectation that Midtown Manhattan office market fundamentals will weaken, limiting upward rating momentum at this time. Should the Manhattan office market experience more dramatic or prolonged weakness such that the company's gain-adjusted debt coverage metrics decline significantly, S&P could revise its outlook and lower its ratings.

"The ratings on Red Hat reflect the company's relatively narrow business profile, modest scale relative to other rated software companies, rapid technology evolution, and high leverage--based on total debt," said Standard & Poor's credit analyst Molly Toll-Reed. "These concerns are offset partially by barriers to entry provided by the large number of independent software and hardware vendors, who certify their products to work with Red Hat, and liquidity and cash flow that are strong for the rating level."

REMOTE DYNAMICS: Posts Approximately $8 Mil. Stockholder's Deficit------------------------------------------------------------------Remote Dynamics reported total stockholders' deficiency of $8.259 million resulting from total assets of $6.131 million and total liabilities of $14.390 million.

"The company made a significant amount of progress this year as we continued to implement the transition plan that we started in late 2006," Gary Hallgren, chief executive officer of Remote Dynamics, said. "Although, because of this transition and our reverse merger accounting, it is difficult to make year-over-year comparisons, we believe our results demonstrate the strength of our business and the quality of our operations.

"In 2007, we completed a significant cost and operational-based restructuring with the objective of making our business self-supporting and eventually profitable," Mr. Hallgren continued. "The restructuring included rightsizing our workforce, clearing away non-critical expenses, reducing debt from our legacy business, and developing a sales and marketing strategy to accelerate unit sales and subscriber growth."

"We are now focused on expanding our footprint in the industry and gaining significant traction in this marketplace," Mr. Hallgren added.

"The REDIview product line will provide the foundation for our revenue growth in the coming year and we expect to enhance the product line by adding new functionality in the areas of dispatching, security, and maintenance," Mr. Hallgren concluded. "We also will remain focused on increasing units in service and revenue, while improving financial results."

Status of Secured Convertible Notes and Liquidity

Subsequent to the end of the year, Remote Dynamics disclosed that approximately $2,669,891 in principal amount of its outstanding secured convertible notes have reached their maturity date and are due and payable. In addition, the company is not in compliance with certain of its other obligations relating to its secured convertible notes. The failure to comply with the obligations relating to these securities exposes the company to demands for immediate repayment as well as default interest and liquidated damages claims by the security holders.

As reported in the Troubled Company Reporter on Jan., 22, 2007,KBA Group LLP, in Dallas, Texas, expressed substantial doubt aboutRemote Dynamics Inc.'s ability to continue as a going concernafter auditing the company's financial statements for the yearended Aug. 31, 2006. The auditing firm pointed to the company'ssignificant working capital deficit, recurring losses, andnegative flows from operating activities.

SCOTTISH RE: Postpones 2007 Earnings Release and Form 10-K Filing-----------------------------------------------------------------Scottish Re Group Limited postponed the release of results for the fourth quarter and the filing of its form 10-K for the year ended Dec. 31, 2007. The company previously expected to report results for the fourth quarter of 2007 on March 27, 2008.

On March 12, 2008, the company filed a form 12b-25 with the Securities and Exchange Commission stating that it was postponing the filing of its annual report on form 10-K for the year ended Dec. 31, 2007 beyond the due date and that it intended to file its form 10-K on or about April 1, 2008 so that the company could:

(i) complete its process of evaluating mark-to-market valuations and other-than-temporary impairments in the carrying value of its available-for-sale securities;

(ii) address the accounting and disclosure requirements arising from the company's recently announced change in strategy; and

(iii) allow sufficient time for the company's independent registered public accounting firm, Ernst & Young LLP, to complete its audit of the company's consolidated financial statements for the year ended Dec. 31, 2007.

The company has filed with the Securities and Exchange Commission an amendment to its form 12b-25.

In light of continuing deterioration in the credit markets and the resulting further declines in the market value of the company's investment portfolio subsequent to the fiscal year end, the company has determined, in consultation with Ernst & Young LLP, that additional work is required to evaluate and conclude on the amount of other-than-temporary impairment charges to be recognized in the consolidated financial statements in accordance with US GAAP.

The company's determination of other-than-temporary impairments for securities classified as available-for-sale involves a variety of assumptions and estimates and includes assessments of risks and uncertainties associated with general economic conditions as well as specific conditions affecting specific issuers. The company's other-than-temporary impairment methodology includes an analysis of gross unrealized losses for securities where the estimated fair value has declined significantly below cost or amortized cost.

Factors being considered by the company include the length of time fair value has been below cost, credit worthiness of the issuer, position of the security in the issuer's capital structure, the presence and estimated value of collateral or other credit enhancement, length of time to maturity, interest rates and the company's intent and ability to hold the security until the market value recovers.

The company is conducting a detailed review in conjunction with Ernst & Young LLP of its current and past accounting practices for other-than-temporary impairments of lower credit quality structured securities pursuant to the requirements of EITF 99-20. Although the company is currently unable to specify the amount of other-than-temporary impairments to be included in realized investment losses for the fourth quarter of 2007, the company believes that the amounts will significantly exceed those previously reported for prior periods.

The time and effort required to complete the foregoing evaluation is proving to be greater than the company had previously anticipated. The company is also examining whether this analysis would require a restatement of previously reported financial results. As a result, additional time is required for the company to complete its work in the foregoing areas and for Ernst & Young LLP to complete its audit procedures of the company's consolidated financial statements. Consequently, the company will be unable to file its Form 10-K for the year ended Dec. 31, 2007 with the Securities and Exchange Commission by April 1, 2008. The company is diligently working on completing the Form 10-K but is unable to specify at this time when it will be in a position to make the filing.

The company anticipates that its full year 2007 results as compared with the corresponding period for 2006 will show that revenues have decreased primarily as a result of realized investment losses representing other-than-temporary impairments on investments. Total benefits and expenses for 2007 are expected to be comparable with that of the prior year. However, in light of changes in the company's assessment of other-than-temporary impairment charges since March 12, 2008, the company currently anticipates that its net loss after tax for the year ended Dec. 31, 2007 will be higher than its net loss reported for the year ended Dec. 31, 2006, although the exact amount of such change cannot be determined at this time.

SCOTTISH RE: S&P Says Notice of Late Filing Won't Move Its Ratings------------------------------------------------------------------Standard & Poor's Ratings Services said that its ratings on Scottish Re Group Ltd. (B/Watch Neg/--) and related entities were not affected by the company's March 27, 2008, notification of late filing of its 2007 10-K. This is because S&P already took into account the securities valuation and the other factors Scottish Re gave for the delay when S&P placed the ratings on CreditWatch negative.

On Jan. 31, 2008, Standard & Poor's lowered its ratings on Scottish Re and placed them on CreditWatch negative because of the company's continuing exposure to increasing investment losses and meaningful risk of losing some reserve credits secured through Ballantyne Re plc. As previously stated, Standard & Poor's will resolve the CreditWatch status of the ratings when it completes its independent process of assessing expected losses given the ongoing market deterioration for these securities and assesses the risk of the company incurring loss of reserve credits.

-- For the 2,973 CUSIPs where Fitch maintains underlying ratings that are 'A' or higher, no rating actions are being taken, as the ratings already reflect the issuers' underlying credit quality;

-- For the 464 CUSIPs where Fitch maintains underlying ratings lower than 'A' and higher than or equal to 'BB', Fitch has revised the ratings to their underlying ratings;

-- For the bonds where Fitch does not maintain underlying ratings, Fitch is at this time keeping the ratings at 'A' and on Rating Watch Negative. The floor for the ratings once the Rating Watches are resolved is currently 'BB', corresponding to XLCA's IFS rating.

Fitch is aware that most of the XLCA-insured municipal bonds without Fitch underlying ratings either possess credit characteristics such that they would be rated higher than 'BB', or may be publicly rated higher than 'BB' on an underlying basis by another rating agency. If Fitch determines that these issuers do not wish to have Fitch publish underlying ratings on their bonds, then Fitch may withdraw their XLCA-insured ratings in the coming weeks.

The affirmations reflect a satisfactory relationship between credit enhancement and future loss expectations. Classes placed on Negative Watch reflect possible deterioration of this relationship in the future.

As of the March distribution date, the transaction is seasoned 65 months and has a pool factor of approximately 10%. The underlying collateral consists of prime adjustable-rate mortgage loans indexed to one-month LIBOR and six-month LIBOR. The mortgage term is typically 25 or 30 years with a five or 10-year interest-only period. The Sequoia Mortgage Trust 11 loans have been acquired from various originators by a subsidiary of Redwood Trust Inc, a mortgage real estate investment trust that invests in residential real estate loans and securities. Wells Fargo Bank Minnesota, National Association (rated 'RMS1' by Fitch) is the master servicer.

SG MORTGAGE: Fitch Lowers Ratings on Ten Certificate Classes------------------------------------------------------------Fitch Ratings has taken rating actions on SG Mortgage Securities Trust mortgage pass-through certificates. Affirmations total $117 million and downgrades total $81.9 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as:

The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness.

SIMMONS BEDDING: Moody's Gives Negative Outlook; Holds All Ratings------------------------------------------------------------------Moody's Investors Service revised Simmons' rating outlook to negative following concerns that the company will face a period of limited cushion in its financial covenants due to the combination of soft discretionary consumer spending, increased raw material costs, abnormally high costs incurred last year with the relaunch of its Beautyrest(R) product line and a contractual revision of its bank covenants in the first quarter.

"Soft consumer spending, high raw material costs and abnormally high costs incurred in the second quarter of 2007 from its relaunch of its' Beautyrest(R) product line have restricted the company's profitability, and, when combined with the contractual revision of bank covenant levels in 2008, may leave the company with limited cushion under its financial covenants" said Kevin Cassidy, Vice President and Senior Credit Officer at Moody's Investors Service.

Moody's recognizes that the company has increased its market share over the last couple of years with its new Beautyrest(R) and Beautyrest Black lines and ComforPedic acquisition and that it continues to generate good operating cash flow.

The negative outlook reflects Moody's belief that the company will face a period of tightness around its covenant compliance. This results from Moody's expectation that reduced consumer spending will pressure its profitability similar to its peers at a time that covenants "step up" requirements for lower leverage and higher interest coverage levels. Although Moody's believes that the company would likely be able to amend its credit facility should the need arise given the strength of its underlying business and cash flows, its credit risk profile has nevertheless risen over the near term.

Simmons Bedding Company, a wholly-owned subsidiary of Simmons Company, is headquartered in Atlanta, Georgia. Net sales for the year ended December 2007 approximated $1.1 billion.

SIMMONS CO: Earns $6 Million in Fourth Quarter Ended December 29----------------------------------------------------------------Simmons Company released operating results for the fourth quarter and full year ended Dec. 29, 2007.

For the fourth quarter of 2007, net income was $6.2 million compared to a net loss of $2.8 million for the same period in 2006.

For 2007, net income was $23.9 million for 2007 compared to $16.6 million for the prior year, exclusive of the gain on the sale of SCUSA net of related taxes.

"During the year we gained considerable market share and thefourth quarter was the eighth consecutive quarter that our sales growth exceeded the growth rate for the industry," Charlie Eitel, Simmons chairman and chief executive officer, said. "Looking forward, our mid-year 2007 acquisition of ComforPedic should position us well for further growth in the specialty bedding area."

"We are starting 2008 in a very challenging retail and manufacturing environment but we believe our sales momentum, strong product offerings and keen focus on cost management put us in position to be successful -- despite a soft economy and higher raw material costs," Mr. Eitel continued.

As of Dec. 29, 2007, Simmons' working capital as a percentage of net sales for 2007 was 1.0% compared to 0.7% at the beginning of the year. During the fourth quarter, Simmons' total debt, less cash on hand, decreased by $35.9 million. For the fourth quarter of 2007, Simmons Bedding's leverage ratio decreased to 4.2 from 4.5, as a result of the company's improved financial performance and debt reduction.

At Dec. 29, 2007, the company's balance sheet showed total assets of $1.477 billion, total liabilities of $1.289 billion and total stockholder's equity of $0.188 billion.

About Simmons Company

Headquartered in Atlanta, Georgia, Simmons Company -- http://www.simmons.com/-- is a mattress manufacturer and marketer of a range of products through its indirect subsidiary Simmons Bedding Company. Products includes Beautyrest(R), Beautyrest Black(TM), ComforPedic by Simmons(TM), Natural Care(TM), BackCare(R), Beautyrest Beginnings(TM) and Deep Sleep(R). Simmons Bedding Company operates 21 conventional bedding manufacturing facilities and two juvenile bedding manufacturing facilities across the United States, Canada and Puerto Rico. Simmons also serves as a key supplier of bedding to hotel groups and resort properties.

* * *

As reported in the Troubled Company Reporter on Feb. 6, 2007,Standard & Poor's Ratings Services assigned its 'CCC+' debt rating to Simmons Super Holding Company proposed $275 million senior unsecured PIK toggle term loan due 2012. At the same time, Standard & Poor's lowered its long term corporate credit rating on Simmons Company to 'B' from 'B+'. The outlook is stable.

SIRIUS SATELLITE: State Counsels Balk at DOJ Approval of XM Merger------------------------------------------------------------------U.S. state counsels dispute the Department of Justice's decision allowing the merger transaction of SIRIUS Satellite Radio Inc. and XM Satellite Radio Holdings Inc. to proceed, Reuters reports. The consortium from 11 states want the Federal Communications Commission to lay down sanctions to preserve competition and protect consumers, supposing the agency approves the merger deal.

Reuters say that the merger deal has been labeled as anti-competitive by the traditional radio industry and by some U.S. lawmakers.

As reported in the Troubled Company Reporter on March 25, 2008,the Department of Justice informed SIRIUS and XM that it has ended its investigation into the pending merger of SIRIUS and XM withouttaking action to block the transaction. This decision means theDOJ has concluded that the merger is not anti-competitive and itwill allow the transaction to proceed. SIRIUS and XM each obtained stockholder approval for the deal in November 2007. The pending merger is still subject to approval of the Federal Communications Commission.

According to Reuters, the state attorneys are afraid that the result of the merger would control satellite radio access across the nation. They also encourage the FCC to require both companies to make interoperable radio receivers available to customers, offer different packages of channels on an a la carte basis, and divest some radio spectrum that would allow another competitor into the business, Reuters recounts.

As previously reported in the TCR, XM and SIRIUS have entered into a definitive agreement, under which the companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $13 billion, which includes net debt of approximately $1.6 billion.

Under the terms of the agreement, XM shareholders will receive afixed exchange ratio of 4.6 shares of SIRIUS common stock for eachshare of XM they own. XM and SIRIUS shareholders will each ownapproximately 50% of the combined company.

About XM

Based in Washington, D.C., XM Satellite Radio Holdings Inc. --http://www.xmradio.com/-- parent of XM Satellite Radio Inc. (Nasdaq: XMSR), is a satellite radio company, with more than8.5 million subscribers. XM delivers entertainment and dataservices for the automobile market through partnerships withGeneral Motors, Honda, Hyundai, Nissan, Porsche, Ferrari, Subaru,Suzuki and Toyota.

About SIRIUS Satellite

Based in New York, SIRIUS Satellite Radio Inc. (NASDAQ: SIRI) --http://www.sirius.com/ -- provides sports radio programming, broadcasting play-by-play action of more than 350 pro and collegeteams. SIRIUS features news, talk and play-by-play action fromthe NFL, NASCAR, NBA, NHL, Barclays English Premier League soccer,UEFA Champions League, the Wimbledon Championships and more than125 colleges, plus live coverage of several of the year's topthoroughbred horse races. SIRIUS also features programming fromESPN Radio and ESPNews.

* * *

As reported in the Troubled Company Reporter on March 6, 2008,Standard & Poor's Ratings Services revised the CreditWatchimplications of the ratings on Sirius Satellite Radio Inc.(CCC+/Watch Developing/--) to developing from positive. S&Poriginally placed the ratings on CreditWatch, with positiveimplications, on Feb. 20, 2007, based on the company's definitiveagreement to an all-stock "merger of equals" with XMSatellite Radio Holdings Inc. (CCC+/Watch Developing/--).

"This action reflects the company's recent good performance due to a strong worldwide auction market and the successful implementation of its strategic initiatives," said Standard & Poor's credit analyst David Kuntz. Sotheby's credit protection profile has been enhanced as a result of the company's improved operations. "We anticipate operations are likely to improve over the near term, thus strengthening credit metrics," added Mr. Kuntz.

SPANSION INC: Completes Acquisition of Saifun Semiconductors------------------------------------------------------------Spansion Inc. completed the acquisition of Saifun Semiconductors Ltd. in accordance with the definitive merger agreement and its amendment that both companies signed on Oct. 8, 2007 and Dec. 12, 2007.

As reported in the Troubled Company Reporter on Dec. 27, 2007,Spansion Inc. and Saifun Semiconductors Ltd. boards of directorshave executed an amendment to their merger agreement providingfor an approximately $31.4 million increase in the cashdistribution, which would result in a cash distribution ofapproximately $6.05 per share in cash based on SaifunSemiconductor's current capitalization.

The company relates that the addition of the Saifun offering will expand Spansion's product portfolio, and enable Spansion's immediate entry into the technology licensing business, significantly expanding Spansion's market opportunity. Saifun will operate as a subsidiary of Spansion. Immediately after the closing, former Saifun shareholders held approximately 14.4% of Spansion's outstanding Class A common stock. Dr. Boaz Eitan was also appointed to Spansion's board of directors effective as of the closing.

"We look forward to leveraging the depth of technology expertise and the quality of people from the Saifun organization," said Bertrand Cambou, president and CEO, Spansion Inc. "With Saifun as a wholly-owned subsidiary, we expect to enter new markets with a powerful technology licensing strategy and a broadened and diversified product portfolio."

Under the terms of the definitive merger agreement and its amendment, each Saifun shareholder received 0.7238 shares of Spansion Class A Common Stock and approximately $6.20 per share in cash for each Saifun ordinary share, subject to certain tax withholding requirements. The exchange ratio and the cash distribution were adjusted in accordance with the terms of the definitive merger agreement and its amendment. The cash distribution will be funded solely from Saifun's existing cash on hand concurrently or before the closing of the transaction.

"This is a new beginning for the Saifun employees to apply their incredible talent and expertise to new market opportunities," said Boaz Eitan, CEO of Saifun Semiconductor. "We remain committed to supporting our existing licensees with the same dedication we have always provided them. We are confident that the combination of the Saifun and Spansion teams will accelerate all initiatives and benefit our customers, potential new customers and our employees."

Since 2002, Spansion has been a licensee of Saifun's NROM intellectual property, which has formed the cornerstone of Spansion's proprietary MirrorBit technology. MirrorBit technology now represents nearly 1/4 of the entire NOR Flash memory segment, and generates revenues at a run rate approaching $2 billion per year.

As part of this relationship, Saifun has also provided design services to Spansion, including the successful development of Spansion's MirrorBit Quad and SPI product families. By combining the two companies, Spansion can further accelerate the development of its next generation product roadmap by directly leveraging over 150 MirrorBit technology and design experts. Spansion has more than 3,000 patents and patent applications in the area of non-volatile memory, combining Spansion IP and NROM IP.

Citigroup Global Markets Inc. served as financial advisor to Spansion and Lehman Brothers served as financial advisor to Saifun. O'Melveny & Myers represented Spansion with Yigal Arnon & Co., as special Israeli counsel and Morrison & Foerster represented Saifun with Eitan-Mehulal Law Group as Israeli counsel.

Saifun shareholders will also be able to obtain this information by contacting Spansion Investor Relations: Marsha Shalvi at +972 9 8928450 or Russ Barck at (408) 616-8025.

About Saifun Semiconductor

Saifun is a provider of intellectual property solutions for the non-volatile memory market. The company's innovative Saifun NROM(R) technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products. These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets. Among the companies licensing Saifun NROM technology are Macronix International, NEC Electronics, Semiconductor Manufacturing International Corporation, Sony Corporation, Spansion, and Tower Semiconductor.

As reported in the Troubled Company Reporter on Feb. 28, 2008, Fitch Ratings affirmed Spansion Inc.'s issuer default rating at'B-' while downgrading these issue-level ratings due to lowerrecovery prospects: (i) $175 million senior secured revolving credit facility due 2010 to 'B/RR3' from 'B+/RR2'; (ii) $625 million senior secured floating rating notes due 2013 to'B/RR3' from 'B+/RR2'; (iii) $225 million of 11.25% senior unsecured notes due 2016 to 'CCC/RR6' from 'CCC+/RR5'; and(iv) $207 million of 2.25% convertible senior subordinateddebentures due 2016 to 'CCC-/RR6' from 'CCC/RR6'. The rating outlook remains negative. Approximately $1.2 billion of debt is affected.

SPYRUS INC: Judge Sontchi Approves $2 Million DIP Financing-----------------------------------------------------------The Hon. Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware authorized SPYRUS Inc. and its debtor-affiliates to obtain, on a final basis, up to $2 million of debtor-in-possession financing from John D. Miller as DIP agent, and and certain holders of the company's Series B Preferred securities.

As reported in the Troubled Company Reporter on March 27, 2008,the DIP loan is secured by liens on property of the Debtors'estates.

As reported in the Troubled Company Reporter on March 18, 2008,Mr. Miller, a former board member of the Debtors in 1999, advancedsecured bridge loans to the Debtors that provide for a $615,000 inthe aggregate, evidenced by secured notes bearing a fixed interestrate of 11% per annum. The notes are secured by substantially allof the Debtors' assets.

The Debtors told the Court that they have an immediate need toaccess Mr. Miller's DIP facility to permit, among other things:

-- orderly continuation of the operation of their businesses;

-- management and preservation of the Debtors' assets and properties;

-- maintenance of business relationships with vendors, suppliers and customers;

-- payment of payroll obligations;

-- satisfaction of other working capital and operational needs; and

-- maintenance of the going concern value of the Debtors' state.

Neil B. Glassman, Esq., at The Bayard, P.A., at Wilmington,Delaware, said that the Debtors lack liquidity to preserve andmaintain the going concern value of their assets.

If the Debtors defaulted of their obligations, the remainingbalance of the loan will bear interest at 14%, Mr. Glassman said.

The Debtors agreed to pay a $30,000 commitment fee, $30,000 exitfee and 10% backstop fee to the DIP Agent.

As security to the Debtors' DIP obligations, the lenders will receive perfected postpetition security interest and liens, senior and superior in priority to all other secured and unsecured creditors of the Debtors' estate.

Headquartered in San Jose, California, SPYRUS Inc. --http://www.spyrus.com-- develops, manufactures and markets hardware and software encryption and security products. TerisaSystems Inc. and Blue Money Software are wholly owned subsidiaryof SPYRUS. SPYRUS has additional offices in New Jersey andAustralia. SYRUS was valued at approximately $12 million as ofMarch 13, 2008.

The company and two of its affiliates filed for Chapter 11protection on March 13, 2008 (Bankr. D. Del. Lead Case.08-10462). Neil B. Glassman, Esq., at Bayard, P.A., represents the Debtors intheir restructuring efforts. No Official Committee of UnsecuredCreditors has been appointed in these cases. When the Debtorsfiled for protection against their creditors, it listed assets anddebts between $1 million to $100 million.

TENFOLD CORP: Enters Merger Agreement with Versata Enterprises--------------------------------------------------------------TenFold Corporation signed a Merger Agreement to be acquired by Versata Enterprises Inc., a privately held provider of enterprise business solutions.

Under the terms of the agreement, TenFold stockholders will receive $0.04 in cash for each share of TenFold common stock, and convertible preferred stock on an as-converted basis.

In connection with the Merger Agreement, TenFold has executed a $300,000 promissory note in favor of Versata. The promissory note bears interest at 10% per annum and is due on the earlier to occur of Sept. 21, 2008, or the termination of the Merger Agreement. Repayment of the promissory note is secured by TenFold's equipment and accounts receivable pursuant to a security agreement executed concurrently with the promissory note.

The proposed transaction has been approved by TenFold's board of directors. In addition, the holders of a majority of TenFold's preferred stock have waived, on behalf of the entire class, the liquidation preference otherwise payable in respect of the preferred stock.

The transaction is expected to be completed in the second quarter of 2008, subject to various conditions, including approval by TenFold's stockholders and other customary closing conditions. A special meeting of TenFold's stockholders will be scheduled soon as practicable after the preparation and filing of proxy materials with the Securities and Exchange Commission.

"By merging with Versata, we believe that TenFold will benefit from the leverage offered by a larger parent company similarly focused on delivering business value to customers through robust, agile applications," Robert Felton, TenFold's chairman, president, and CEO. "We expect this merger to enable TenFold to provide our customers with a broader set of product and services offerings, as well as continue to focus on the significant business benefits of the TenFold technology."

"TenFold's history of providing its customers and partners with significant savings in development and maintenance complements Versata's strategy of lowering customers' total cost of ownership with solutions to accelerate development, reduce ongoing maintenance, and drive business impact," Randy Jacop's, CEO of Versata Enterprises, said. "Our customer success program compels us to align investments and priorities with our customers, a unique focus in the software industry intended to drive benefit to TenFold's customers. We are excited by TenFold's long-term customer relationships and look forward to welcoming them to our customer success program."

Stockholders will be able to obtain free copies of the Proxy Statement from TenFold by contacting:

Versata Enterprises -- http://www.versata.com/-- solves the most complex business problems for the largest organizations covering 45 countries. Versata Enterprises comprises a number of leading enterprise solution providers, including Versata Inc., Artemis International Solutions Corporation, Gensym Corporation, and Nextance Inc. Versata distinguishes itself in the software industry by focusing on customer priorities as driven by value delivered. Versata's Customer Success Program ensures customer involvement in product decisions and business priorities and provides a twice-yearly opportunity for customers to score Versata's performance against commitments.

Tanner LC in Salt Lake City, Utah, expressed substantial doubtabout Tenfold Corp.'s ability to continue as a going concern afterauditing the company's financial statements for the years endedDec. 31, 2006, and 2005. The auditing firm cited that the companyused significant balances of its cash in operating activitiesand at present levels of cash consumption will not have sufficientresources to meet operating needs. This going concern phrase was still included in the financial results ended Sept. 30, 2007.

THORNBURG MORTGAGE: Completes $1.35 Bil. Offering of Secured Notes------------------------------------------------------------------Thornburg Mortgage, Inc. has completed its previously announced offering to raise $1.35 billion from the sale of senior subordinated secured notes, warrants to purchase common stock and a participation in certain mortgage-related assets.

The company has received $1.15 billion of the proceeds from the offering. The remaining $200 million of the offering proceeds is being held in escrow and will be delivered to the company upon the successful completion of a tender offer for its preferred stock.

The company's senior subordinated secured notes, which are scheduled to mature on March 31, 2015, have an annual interest rate of 18%, which will be adjusted to 12% upon shareholder approval of an increase in the number of authorized shares of capital stock that the company may issue to 4 billion shares and the successful completion of a tender offer for its preferred stock.

Each purchaser of these notes also received initial detachable warrants to purchase shares of common stock, which are exercisable at a price of $0.01 per share. These warrants, in the aggregate, will be equal to approximately 39.6% of the currently outstanding fully diluted shares of the company after giving effect to all anti-dilution adjustments under all existing instruments and agreements. The company sold $1.15 billion aggregate principal amount of the notes and the detachable warrants for an aggregate purchase price of $1.05 billion.

In addition, the company and MatlinPatterson Global Opportunities Partners III L.P. and MatlinPatterson Global Opportunities Partners (Cayman) III L.P. -- which committed to purchase the new notes -- have entered into a 7-year Principal Participation Agreement whereby the investors have paid the company $100 million.

In return, the investors will receive monthly payments in the amount of the principal payments received on the company's portfolio of mortgage securities and other assets constituting collateral under the company's Override Agreement with five of its remaining reverse repurchase agreement counterparties, after deducting amounts due under the financing agreements that relate to such assets. The investors will be entitled to receive the payments from the March 16, 2009 expiration date of the Override agreement through March 31, 2015, the maturity date of the Principal Participation Agreement.

At the maturity date of the Principal Participation Agreement, the investors will receive the mark-to-market valuation of the collateral after deducting the then outstanding balances of the financing agreements that relate to such collateral. The Principal Participation Agreement may be terminated before the 7th year anniversary, at the company's option, upon the occurrence of a shareholder vote to increase the number of authorized shares, the purchase by the company of at least 90% of the outstanding preferred stock in the tender offer and the issuance of the additional warrants.

Upon approval of the company's shareholders of an increase in the number of authorized shares of capital stock, the purchase by the company of at least 90% of the outstanding preferred stock in the tender offer and termination of the Principal Participation Agreement, those investors who are participants in the Principal Participation Agreement and those who have subscribed to the escrow fund -- if the funds are used -- will then receive additional warrants such that the additional warrants, together with the initial detachable warrants will be exercisable for shares of common stock that constitute 87.8% of the fully diluted equity of the company after giving effect to the issuance of warrants to purchase 5% of the company's common stock on a fully diluted basis in the tender offer and all anti-dilution adjustments under all existing instruments and agreements.

If warrants are not issued in the tender offer, the initial and additional warrants would constitute 90% rather than 87.8% of the fully diluted shares outstanding.

Upon the occurrence of these events, the investors will receive up to an additional $200 million aggregate principal amount of senior subordinated secured notes and related detachable warrants to the extent that the escrowed funds are used to fund the tender offer and the annual interest payable on the notes will decrease to 12%.

The proceeds of the private placement will be used to satisfy the outstanding margin calls owed to the reverse repurchase agreement counterparties, a key contingency of the Override Agreement, as amended, that the company originally announced on March 19, 2008.

The company entered into the agreement with its five remaining reverse repurchase agreement counterparties and their affiliates pursuant to which the counterparties will provide approximately $5.8 billion of reverse repurchase agreement financing.

The company will conduct a tender offer for all of its outstanding preferred stock at a price of $5 per $25 of liquidation value, plus, upon shareholder approval of additional authorized shares, warrants to purchase an aggregate of 5% of the company's common stock outstanding on a fully diluted basis or, if shareholder approval is not obtained, alternative consideration. To the extent that the escrowed funds are not used to purchase the preferred shares that are tendered, unused escrow funds will be returned to the investors.

Dividend Payments to Preferred Stock Halted

Additionally, the company has suspended dividend payments on all outstanding series of preferred stock.

The company is required to seek shareholder approval to amend the company's charter to increase the number of shares of capital stock the company is authorized to issue. The company will hold its annual shareholder meeting as promptly as practicable, but no later than June 15, 2008, at which time its shareholders will vote on, among other things, amendments to the company's Articles of Incorporation to increase the number of authorized shares of capital stock to at least 4 billion shares.

Upon completion of all of the transactions, common shareholders will hold approximately 5.5% of common stock on a fully diluted basis. The company has agreed that, upon clearance of regulatory matters, if any, certain investors will have the right to designate up to five members of the company's ten-member board. Five of the company's current directors, yet to be determined, will resign to make positions available for the directors to be designated by such investors.

The issuance of the warrants in connection with the private placement, in connection with the tender offer to be conducted and pursuant to the Override Agreement would normally require approval of the company's shareholders in accordance with the shareholder approval policy of the New York Stock Exchange. However, after a careful review of the facts, the members of the Audit Committee of Thornburg Mortgage's Board of Directors determined that any delay caused by securing shareholder approval prior to the issuance of these securities would seriously jeopardize the financial viability of the company.

Pursuant to an exception in the New York Stock Exchange's shareholder approval policy, the company's audit committee members approved the company's omission to seek the shareholder approval that would otherwise have been required under that policy. The company has requested approval from the New York Stock Exchange for the use of the exception and in reliance upon this exception, has agreed to mail a letter to all shareholders notifying them of its intention to issue the securities without prior shareholder approval.

Neither the sale or the issuance of the senior subordinated secured notes, the warrants, the participations or the shares of common stock underlying the warrants in this transaction have been registered under the Securities Act of 1933, as amended, or applicable state securities laws and will not be offered, sold or transferred in the United States absent registration or an exemption from registration. The company has agreed to file a resale registration statement on Form S-3 and has agreed to take steps to cause such registration statement to be declared effective within 180 days after the closing of the transaction for purposes of registering the resale by the investors of the shares of common stock underlying the warrants. The company has also agreed to file a registration statement to allow the senior subordinated secured notes to be exchanged for registered notes and guarantees having substantially the same terms as the notes or register the senior subordinated secured notes for resale.

As reported in the Troubled Company Reporter on March 10, 2008,Moody's Investors Service downgraded to Ca from Caa2 the seniorunsecured debt, and to C from Ca the preferred stock ratings ofThornburg Mortgage, Inc. Thornburg's Ca unsecureddebt rating remains under review for possible downgrade. Thedowngrades were in response to Thornburg's announcement thatcross-defaults have been triggered under all of the REIT'srepurchase agreements and secured loan agreements. Reverserepurchase agreements represent a key source of funding for thecompany.

The TCR said on March 10 that Standard & Poor's Ratings Serviceslowered its issue ratings on Thornburg Mortgage Inc.'s seniorunsecured debt to 'CC' from 'CCC+' and preferred stock to 'C' from'CCC-'. Both issue ratings will remain on CreditWatch negative,where they were placed on March 3, 2008. The counterparty creditrating remains on selective default. Given Thornburg's limitedfinancial resources, S&P believes the risk of default hasincreased further.

The TCR also said on March 10 that, given Thornburg Mortgage,Inc.'s weakening credit profile stemming from defaults under thecompany's reverse repurchase agreements, Fitch has downgraded theDebtors' four ratings -- Issuer Default Rating to 'RD' from 'CCC';-- Senior unsecured notes to 'C/RR6' from 'CCC-/RR5'; -- Unsecuredsubordinate notes to 'C/RR6' from 'CC/RR6'; and -- Preferred stockto 'C/RR6' from 'CC/RR6'.

TLC FUNDING: Moody's Withdraws All Ratings on Amedisys Acquisition------------------------------------------------------------------Moody's Investors Service withdrew all ratings of TLC Funding Corporation. TLC Funding Corporation is a vehicle that was used to finance the assets of TLC Health Care Services, Inc. The rating action follows the close of the acquisition of TLC by Amedisys Inc., which was previously announced on Feb. 19, 2008. Based on change of control provisions within TLC's credit agreement, Moody's understands that TLC's term loans have been repaid and that its revolving credit agreement has been terminated.

TLC Health Care Services, Inc. is a leading provider of home health care services. TLC provides a wide range of skilled nursing and home health aide services to assist patients with activities of daily living.

TLC VISION: Raises Going Concern Doubt on OccuLogix Unit--------------------------------------------------------The management of TLC Vision Corporation stated in its annual report for the year ended Dec. 31, 2007, filed with the Securities and Exchange Commission, that as of Dec. 31, 2007, and 2006, the company's equity investment in OccuLogix, Inc., totaled $0 and $14.4 million, respectively.

OccuLogix

As of Dec. 31, 2007, the company owned approximately 33%, or18.8 million shares, of OccuLogix, Inc.'s issued and outstanding common stock with a fair market value of $1.5 million based on the year-end closing price of OccuLogix's common stock.

Because the company accounted for its original investment in OccuLogix at historical cost, the company must eliminate certain items when it recognizes equity earnings (losses) from OccuLogix. For the year ended Dec. 31, 2007, the company recognized $13.4 million of equity losses from OccuLogix.

During the quarter ended Dec. 31, 2007, OccuLogix suspended indefinitely its RHEO System clinical development program in dry age-related macular degeneration, and sold its SOLX subsidiary. In addition, it announced its intent to significantly reduce headcount and to explore a full range of strategic alternatives to maximize shareholder value. These actions resulted in OccuLogix recording significant charges, including an impairment of assets.

TLC Vision recorded its share of the impairment charges as an increase in losses from equity investments and recorded its portion of the other charges to the extent of its ownership.

"As a significant shareholder of OccuLogix, our stock price may be affected by changes in the price of OccuLogix's common stock. As of Dec. 31, 2007, the market price of OccuLogix's stock was $0.08. We are unable to predict how fluctuations in OccuLogix's stock price will affect our own stock price," TLC stated.

TLC added that since the second quarter of 2006, it had accounted for its investment in OccuLogix under the equity method. Under APB 18, "The Equity Method of Accounting for Investments in Common Stock," an investor's share of losses of an investee may equal or exceed the carrying amount of an investment accounted for by the equity method. The investor ordinarily should discontinue applying the equity method when the investment is reduced to zero and should not provide for additional losses unless the investor has guaranteed obligations of the investee or is otherwise committed to provide further financial support for the investee. If the investee subsequently reports net income, the investor should resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended.

As the company's investment in OccuLogix reached $0 as of Dec. 31, 2007, resulting from continual losses incurred by OccuLogix, the company has suspended use of equity method accounting for OccuLogix on a go forward basis.

Because of the numerous risks and uncertainties associated with developing and commercializing new medical therapies, including obtaining FDA approval, OccuLogix is unable to predict the extent of any future losses or when it will become profitable, if ever. The company's operating results and stock price may be negatively impacted by the operating results of OccuLogix.

Further, OccuLogix's history of losses and financial condition raise substantial doubt about OccuLogix's ability to continue as a going concern.

$85 Million Notes

During June 2007, the company issued notes in an aggregate principal amount of $85 million that mature in June 2013. The notes bear floating-rate interest payable.

The company cannot be assured that its maintenance of this indebtedness will not adversely affect its operating results or financial condition.

In addition, changes by any rating agency to its credit rating can negatively impact the value and liquidity of both its debt and equity securities.

The company had entered into certain interest rate swaps to, in effect, convert the interest rates of the floating-rate interest notes into fixed rates.

The instruments governing the notes contain certain covenants that may adversely affect its ability to incur certain liens or engage in certain types of transactions.

If the company is not successful in achieving operational and financial goals in future periods it could be at risk of non-compliance regarding its covenants, which could result in a material adverse impact to the company's financial condition.

Financials

TLC Vision posted a net loss of $43,514,000 on total sales of $298,414,000 for the year ended Dec. 31, 2007, as compared with a net loss of $11,519,000 on total sales of $277,853,000 in the prior year.

At Dec. 31, 2007, the company's balance sheet showed $237,810,000 in total assets, $175,688,000 in total liabilities, and $62,122,000 in stockholders' equity.

The company's consolidated balance sheet at Dec. 31, 2007, showed strained liquidity with $45,883,000 in total current assets available to pay $57,024,000 in total current liabilities.

At Dec. 31, 2007, the company had an accumulated deficit of $275,404,000.

Headquartered in Mississauga, Ontario, TLC Vision Corporation(TSE:TLC) -- http://www.tlcv.com/-- is an eye care services company providing eye doctors facilities, technologies and staffing support they need to deliver patient care. The majority of the company's revenues come from laser refractive surgery, which involves using an excimer laser to treat common refractive vision disorders, such as myopia, hyperopia and astigmatism. The company's business models include arrangements ranging from owning and operating refractive centers to providing access to lasers through branded TLC fixed site and mobile service relationships.

In addition to refractive surgery, the company is diversified into other eye care businesses. Through its MSS, Inc., subsidiary, the company furnishes hospitals and other facilities with mobile or fixed site access to cataract surgery equipment, supplies and technicians.

TOUSA INC: Files Motion to Extend Removal Period to July 27-----------------------------------------------------------TOUSA Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of Florida to extend the time within which they may remove civil actions and proceedings to which they are a party, through and including July 27, 2008.

The debtors are parties to numerous civil actions in the various states in which they do business, Paul Steven Singerman, Esq., at Berger Singerman, P.A., in Miami, Florida, informs the Court. These lawsuits are generally managed by the Debtors' separate divisions and are being handled on behalf of the Debtors by a wide variety of local and national law firms.

Section 1452 of the Judicial and Judiciary Procedures Code provides for the removal of actions related to bankruptcy cases. It provides, in pertinent part, that a party may remove any claim or cause of action in a civil action by a governmental unit to enforce that governmental unit's police or regulatory power, to the district court for the district where that civil action is pending.

Rule 9027 of the Federal Rules of Bankruptcy Procedure sets forth the time periods for the filing of notice to remove claims or causes of action. Specifically, Bankruptcy Rule 9027 provides that:

(i) if the claim or cause of action in a civil action is pending when a case under the Bankruptcy Code is commenced, a notice of removal may be filed only within the longest of (A) 90 days after the order for relief in the case under the Bankruptcy Code, (B) 30 days after entry of an order terminating a stay, if the claim or cause of action in a civil action has been stayed under Section 362 of the Bankruptcy Code, or (C) 30 days after a trustee qualifies in a chapter 11 reorganization case but not later than 180 days after the order for relief; and

(ii) if a claim or cause of action is asserted in another court after the commencement of a case under the Bankruptcy Code, a notice of removal may be filed with the clerk only within the shorter of (A) 30 days after receipt, through service or otherwise, of a copy of the initial pleading setting forth the claim or cause of action sought to be removed, or (B) 30 days after a receipt of the summons if the initial pleading has been filed with the court but not served with the summons.

The time within which the Debtors may file a notice of removal of pending civil actions under Bankruptcy Rule 9027(a) will expire on April 28, 2008.

By this motion, the Debtors ask the Court to extend the time within which they may remove civil actions and proceedings to which they are a party, through and including July 27, 2008.

According to Mr. Singerman, the Debtors are continuing to review their files and records to determine whether they should remove certain claims or civil causes of action pending in state or federal court to which they might be a party.

Because evaluation of the Civil Actions requires attention from the Debtors' key personnel in each division and the Debtors' law department, all of whom are actively involved in other key aspects of the Debtors' reorganization efforts, the Debtors require additional time to consider filing notices of removal in the actions, Mr. Singerman tells the Court.

Unless the proposed extension is granted, the Debtors believe they will not have sufficient time to give adequate consideration to whether removal of any Civil Actions is necessary.

The rights of any party to the Civil Actions will not be prejudiced by an extension, Mr. Singerman asserts. If the Debtors ultimately seek to remove any action pursuant to Bankruptcy Rule 9027, any party to the litigation can seek to have the action remanded pursuant to Section 1452(b) of the Bankruptcy Code, he elaborates.

The Debtors reserve their right to seek further extensions.

About TOUSA Inc.

Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilderin the United States, operating in various metropolitan markets in10 states located in four major geographic regions: Florida, theMid-Atlantic, Texas, and the West. TOUSA designs, builds, andmarkets high-quality detached single-family residences, townhomes, and condominiums to a diverse group of homebuyers, such as"first-time" homebuyers, "move-up" homebuyers, homebuyers who arerelocating to a new city or state, buyers of second or vacationhomes, active-adult homebuyers, and homebuyers with grown childrenwho want a smaller home. It also provides financial services toits homebuyers and to others through its subsidiaries, PreferredHome Mortgage Company and Universal Land Title Inc.

UNITED HERITAGE: Nasdaq Says Stocks Listing Rely on $2.5MM Equity -----------------------------------------------------------------United Heritage Corporation received a letter from the Nasdaq Hearings Panel indicating that the Panel has determined to continue the listing of the company's common stock, subject to the condition that the company demonstrates compliance with the $2.5 million minimum shareholders' equity requirement on the Form 10-K it will file for the fiscal year ended March 31, 2008.

If the company fails to demonstrate shareholders' equity of $2.5 million or greater, the Panel will promptly conduct a hearing with respect to the failure and may immediately delist the company's common stock from The Nasdaq Stock Market.

If the company fails to comply with any requirement for continued listing other than shareholders' equity, it will be provided with written notice of the deficiency and an opportunity to present a definitive plan to regain compliance. The Panel will thereafter render a determination with respect to the continued listing.

Headquartered in Midland, Texas, United Heritage Corporation(NasdaqCM: UHCP) -- http://www.unitedheritagecorp.com/ -- is an independent producer of natural gas and crude oil based inMidland, Texas. The company produces from properties it leases inTexas. Lothian Oil Inc., formerly the company's largestshareholder, provided the company with the funds to operate fromNovember 2005 until it declared bankruptcy on June 13, 2007.

Going Concern Doubt

Weaver and Tidwell L.L.P., in Fort Worth, Texas, expressedsubstantial doubt about United Heritage Corp.'s ability tocontinue as a going concern after auditing the company'sconsolidated financial statements for the years ended March 31,2007, and 2006. The auditing form reported that the company soldall of its proved reserves in 2006 and currently does not havesignificant revenue producing assets. In addition, the auditingfirm said that the company has limited capital resources and it'smajority shareholder who was financing the company's developmentfiled for bankruptcy subsequent to March 31, 2007.

Zoots is the second acquisition U.S. Dry Cleaning has made this quarter. This puts U.S. Dry Cleaning on track to achieve its goal of a $100 million revenue run rate by the end of 2008. In February, the company acquired the leading dry cleaning business in Central California. Together the two acquisitions will increase the company's annualized revenue run rate by 120%.

"We are determined to carry out our game plan of buying market share leading companies that have strong cash flow," Robbie Lee, founder and chief executive officer of U.S. Dry Cleaning said. "With this acquisition of Zoots and our previously announced acquisition in February of Team Enterprises Inc., and their related entities in Central California, we are on track to achieve our goal of a $100 million run rate by the end of 2008."

"The acquisition brings revenue, volume and talent to U.S. Dry Cleaning," Mr. Lee continued. "Let me assure our shareholders, this is our first of several planned acquisitions in the eastern half of the U.S."

According to the terms of the acquisition, the company paid a total of approximately $1.9 million, which included approximately $940,000 in cash and the balance in a short-term note.

"We are very enthusiastic about joining the U.S. Dry Cleaning family and excited to be part of the effort to create the nation's premier dry cleaning chain," William Wall, formerly of Zoots and now general manager of U.S. Dry Cleaning Portsmouth Inc. stated.

About Zoots Corp.

Headquartered in Newton, Massacusetts, Zoots Corporation -- http://www.zoots.com -- serves customers weekly through about 75 dry-cleaning outlets and 115 home delivery routes in Connecticut, Massachusetts, New Hampshire, New Jersey, Rhode Island, and Virginia. Its name developed by a branding firm, Zoots boasts that it doesn't dry clean with perchloroethylene, a carcinogen typically used in the process. Adding to its dry-cleaning holdings, Zoots acquired rival Sarni Cleaners in mid-2006. Founded in 1998 by former chief executive officer, Todd Krasnow and Tom Stemberg, both former Staples executives, Zoots is owned by venture-capital firms.

About U.S. Dry Cleaning

Headquartered in Palm Springs, California, U.S. Dry CleaningCorporation (OTC BB: UDRY) -- http://www.usdrycleaning.com/-- operates in the laundry and dry cleaning business and isgeographically concentrated in Hawaii and Southern California.

US AIRWAYS: Employees to Get $49 Million in Profit Sharing----------------------------------------------------------Profit sharing checks totaling $49 million will be distributed to US Airways Group Inc. employees in hundreds of communities today as the airline celebrates its second consecutive year of profitability since merging with America West in 2005.

"Last year was our second consecutive profitable year as one carrier and I'm delighted that today our employees will share in this success through our profit sharing program," said Chairman and CEO Doug Parker. "Our employees have done an outstanding job of taking care of our customers as evidenced by our recent industry leading on-time performance."

US Airways' profit sharing program sets aside 10% of the airline's annual pre-tax profits excluding special items. The airline posted a 2007 net profit (excluding special items) of $427 million as announced earlier this year.

-- Breaking ground for a state-of-the-art single operations control center in Pittsburgh;

-- Launching three new international destinations, Athens, Zurich, and Brussels;

-- Receiving an award for the airline's first-ever route to Asia from Philadelphia to Beijing;

-- Placing an order for 17 new A330s, 22 new A350s, and 60 A320 family aircraft; and

-- Recently hired 350 new pilots, recalled 200 flight attendants and hired more than 1,000 new employees over the summer of 2007.

In addition to the profit sharing program US Airways employees receive cash bonuses for achieving operational incentives. US Airways paid $5.2 million to employees in incentives for 2007, and recently announced it will pay out $1.8 million in incentive checks to employees for achieving the top spot in on-time performance among major carriers in January.

About US Airways

Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., AlleghenyAirlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc.,Material Services Company, Inc., and Airways Assurance Limited,LLC.

Under a Chapter 11 plan declared effective on March 31, 2003,USAir emerged from bankruptcy with the Retirement Systems ofAlabama taking a 40% equity stake in the deleveraged carrier inexchange for $240 million infusion of new capital.

As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services revised its outlook on USAirways Group Inc. to stable from positive. S&P has affirmed allratings, including the 'B-' long-term corporate credit rating.

US AIRWAYS: To Open Separate Talks with America West Pilots-----------------------------------------------------------US Airways Group Inc.'s management received notification from the America West pilots requesting to commence separate contract negotiations under Section 6 of the Railway Labor Act.

Also the America West pilots have begun separate negotiations with US Airways management on future Airbus A330-200 widebody flying.

In a statement, Captain John McIlvenna, chairman of the union leadership group representing the America West pilots, said:

"America West pilots have lost all patience with this merger. For nearly three years, we have been working with our brothers and sisters at the former US Airways to complete a joint contract. We had hoped that this process would prove fruitful for all pilots of the new US Airways; however, we have come to the point where we are leaving millions of dollars on the table each month for management to pocket. As a result, the pilots I represent are angry, frustrated and asking what was in this merger for us. It appears as if the answer is nothing."

"Since the America West-US Airways merger was consummated, more than 400 US Airways East (former US Air) pilots have been able to upgrade to captain positions, yet less than 40 US Airways West (former America West) pilots have been offered the same opportunity. It's long past time for management to make this merger right for the hard working pilots out West, whose contributions and sacrifices enabled the creation of the new US Airways."

The America West pilots' current contract became amendable December 2006, with provisions that allowed for the parties to open negotiations in June 2006. The US Airways pilots' contract is not amendable until December 2009. Prior to the merger, the two pilot groups negotiated a Transition Agreement with management that (among other things) recognized the rights of America West pilots to enter into Section 6 negotiations separately with management at any time. Until now, those negotiations were in recess, as both pilot groups had been dedicating themselves to completing a joint contract with management.

The America West pilots are represented by the Air Line Pilots Association, Int'l. (ALPA). Founded in 1931, ALPA is the world's largest pilot union, representing 61,000 pilots at 43 airlines in the United States and Canada. Visit the ALPA Web site at http://www.alpa.org/

US Airways Rejects Request

US Airways rejected the request from America West pilots, Bloomberg News reports. The pilots union asked US Airways to start the talks before April 14.

"We believe it to be in the best interest of US Airways and all of our employees to focus on joint negotiations for a single labor agreement as we are now one company. We are ready to meet with both of our pilot groups to jointly negotiate one single contract," US Airways says, according to Bloomberg.

The America West pilots say the US Airways pilots are being promoted to captain at a much higher rate than they are. They do not want to wait when the US Airways pilot agreement can be renegotiated in 2009.

Pilots Start Vote

The pilots started electronic voting on March 13; the election will end, and the results will be announced, on April 17, The Timesonline.com reports.

Appeals are expected regardless of the outcome of the election, union officials from both sides say. Nevertheless, it's unclear when pilots might get back to the bargaining table with US Airways management, The Timesonline.com discloses.

About US Airways

Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., AlleghenyAirlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc.,Material Services Company, Inc., and Airways Assurance Limited,LLC.

Under a Chapter 11 plan declared effective on March 31, 2003,USAir emerged from bankruptcy with the Retirement Systems ofAlabama taking a 40% equity stake in the deleveraged carrier inexchange for $240 million infusion of new capital.

As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services revised its outlook on USAirways Group Inc. to stable from positive. S&P has affirmed allratings, including the 'B-' long-term corporate credit rating.

US AIRWAYS: Reaches Tentative Unified Mechanics Pact with IAM-------------------------------------------------------------US Airways Group Inc. and the International Association of Machinists District 142 today reached a tentative agreement on a unified contract that moves all US Airways' maintenance-and-related employees to one labor contract.

The contract, if ratified, would move pre-merger America West maintenance-and-related employees to the higher pay scales of the pre-merger US Airways labor contract and modifies the existing East labor agreement in ways that are mutually beneficial to IAM mechanic-and-related employees and the company.

"This is an important milestone in the US Airways merger and we're delighted to reach an agreement that recognizes the contributions of our maintenance team," said Doug Parker, chairman and CEO of US Airways.

The IAM mechanics' agreement, covering approximately 3,300 maintenance-and-related employees (800 West and 2,500 East), is the latest unified contract achieved at the new US Airways since its merger with America West in 2005.

Agreements had previously been reached covering about 7,500 airport and reservations agents represented by the Communications Workers of America and International Brotherhood of Teamsters, and with the Transport Workers Union covering several hundred flight dispatchers, engineers and ground school instructors.

"Maintenance-and-related employees have been working under the terms of a transition agreement which essentially kept the groups separate under their respective existing labor contracts," said Al Hemenway, vice president of Labor Relations. "These unified agreements help fulfill an important goal of our merger, that is, to have each group of our represented employees working as one team with identical pay, benefits and work rules."

Details of the agreement will be released by the IAM. The agreement is subject to a ratification vote of the IAM membership and would become amendable on Dec. 31, 2011.

IAM's Statement

IAM District 142 said on March 12, 2008, that it reached a tentative agreement with US Airways covering 3,300 Mechanic & Related employees.

"This agreement provides stability and security for our members at a time when the airline industry is in turmoil," said IAM General Vice President Robert Roach, Jr. "I thank our negotiating committee for a job well done under very difficult circumstances."

The tentative agreement would bring US Airways and former America West Mechanic & Related employees under the same contract and wage scale for the first time since the merger of the two airlines in September 2005. The agreement, if ratified, will be effective through December 31, 2011. Negotiations for IAM-represented Maintenance Training Specialists and Fleet Service personnel are continuing.

"Our members have waited too long to share in the benefits the US Airways-America West merger promised," said IAM District 142 President Tom Higginbotham. "This agreement provides annual wage increases, job security and new pension benefits for all our Mechanic & Related members."

Highlights of the agreement include base wage and license premium increases, improved overtime rates, new shift premiums and participation in the IAM National Pension Plan, a secure multi-employer pension plan.

The tentative agreement must be ratified by the membership. The District 142 negotiating committee is recommending ratification of the agreement, and a voting schedule is being prepared. Complete terms of the agreement will be available on the District 142 Web site http://www.iamdl142.org

About US Airways

Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., AlleghenyAirlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc.,Material Services Company, Inc., and Airways Assurance Limited,LLC.

Under a Chapter 11 plan declared effective on March 31, 2003,USAir emerged from bankruptcy with the Retirement Systems ofAlabama taking a 40% equity stake in the deleveraged carrier inexchange for $240 million infusion of new capital.

As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services revised its outlook on USAirways Group Inc. to stable from positive. S&P has affirmed allratings, including the 'B-' long-term corporate credit rating.

VERENIUM CORP: Ernst & Young Expresses Going Concern Doubt----------------------------------------------------------Ernst & Young LLP raised substantial doubt about the ability of Verenium Corporation to continue as a going concern after it audited the company's financial statements for the year endedDec. 31, 2007. The auditor pointed to the company's operating losses and accumulated deficit.

The company has incurred net losses of $89.7 million and$39.3 million for the years ended Dec. 31, 2005, and 2006, respectively, and has an accumulated deficit of $437.1 million as of Dec. 31, 2007.

The company posted a net loss of $107,585,000 on total sales of $46,273,000 for the year ended Dec. 31, 2007.

At Dec. 31, 2007, the company's balance sheet showed $264,779,000 in total assets, $169,564,000 in total liabilities and $95,215,000 in stockholders' equity.

Based on the company's operating plan, its existing working capital is not sufficient to meet the cash requirements to fund its planned operating expenses, capital expenditures, and working capital requirements through Dec. 31, 2008, without additional sources of cash and the deferral, reduction or elimination of significant planned expenditures.

Through June 20, 2007, the date of the closing of the company's merger with Celunol Corp., its losses were attributable to its specialty enzymes business. The company expects to continue to incur additional losses for the foreseeable future in its specialty enzymes business as it continues to develop specialty enzyme products, and as a result of its continued investment in sales and marketing infrastructure to support anticipated growth in product sales. Beginning with the closing of its merger with Celunol Corp. on June 20, 2007, the company began to incur additional losses as it pursued vertical integration strategy within biofuels.

"We have used a significant portion of the proceeds received from sales of our 5.5% notes in April 2007 to make enhancements to our pilot facility and continue construction and development of our demonstration-scale facility in Jennings, Louisiana, to commercialize our specialty enzymes products, to continue our research and development efforts in both specialty enzymes and biofuels, and for expenses related to our merger with Celunol, all of which have adversely affected, and will continue to adversely affect, our operating results until revenues from our specialty enzymes business and our biofuels business reach levels at which we can fully support our operating and capital expenditures," the company related.

The company also stated that it did not generate cash flows from operating activities during 2007 sufficient to offset its operating and capital expenditures. Based on the information currently available regarding its proposed plans and assumptions relating to operations, it anticipates that the net proceeds from its sale of the 8.0% notes in February 2008, together with its budgeted cash flow from operations, may not be sufficient to meet cash requirements for working capital and capital expenditures beyond December 2008 without additional sources of cash. As a result, it may be necessary to reduce or defer certain planned expenditures, to secure additional sources of revenue and/or to secure additional financing to support its planned operations.

Based in Cambridge, Mass., Verenium Corporation (NASDAQGM: VRNM) -- http://www.verenium.com/-- together with its subsidiaries, develops and produces specialty enzyme products, and focuses on the production and commercialization of biofuels, primarily ethanol from cellulosic biomass. The Specialty Enzymes segment develops customized enzymes for use in alternative fuels, specialty industrial processes, and animal nutrition and health markets. It operates in North America, South America, Europe, Asia, and the Middle East. The company was founded in 1992 under the name Industrial Genome Sciences, Inc., and changed its name to Diversa Corporation in 1997. Further, it changed its name to Verenium Corporation in 2007.

VERMILLION INC: Market Value Non-Compliance Cues Stocks Delisting-----------------------------------------------------------------Vermillion Inc. received a letter from the Listing Qualifications Staff of NASDAQ notifying that, based upon the company's non-compliance with the $35 million market value of listed securitiesrequirement for continued listing on The NASDAQ Capital Market, as set forth in NASDAQ Marketplace Rule 4310(c)(3)(B), the company's securities are subject to delisting from NASDAQ unless the company requests a hearing before a NASDAQ Listing Qualifications Panel.

The company plans to timely request a hearing before a NASDAQ Panel, which will stay any action with respect to the Staff Determination until such NASDAQ Panel renders a decision subsequent to the hearing. The company anticipates that the hearing will be scheduled to occur within the next 45 days. There can be no assurance that such NASDAQ Panel will grant thecompany's request for continued listing.

The Staff Determination follows correspondence from NASDAQ datedFeb. 22, 2008, which was disclosed by the company on Feb. 27, 2008, that, should the company fail to regain compliance with the market value of listed securities requirement by March 24, 2008, NASDAQ would provide written notification of such and the opportunity to request a hearing before the NASDAQ Panel.

The company also received communication from The NASDAQ Stock Market that, as a result of the company's common stock closing at $1 per share or more for a minimum of 10 consecutive business days, it has achieved compliance with the minimum bid price requirement for continued listing set forth in NASDAQ MarketplaceRule 4310(c)(4) ("Rule 4310(c)(4)").

The communication follows a notice of noncompliance from NASDAQ dated Sept. 6, 2007, which indicated that the company failed to comply with the minimum bid price requirement for continued listing set forth in Rule 4310(c)(4).

The notice of noncompliance gave the company notice that the bid price of its common stock had closed under $1 per share for the previous 30 business days, and stated that if the company could not demonstrate compliance with Rule 4310(c)(4) by March 4, 2008, the NASDAQ staff would determine whether or not the company meets The NASDAQ Capital Market initial listing criteria set forth in NASDAQ Marketplace Rule 4310(c), except for the bid pricerequirement.

The bid price requirement was met in part as a result of the 1-for-10 reverse stock split of the company's outstanding common stock effected by the filing of the company's Third Amended and Restated Certificate of Incorporation on Feb. 29, 2008, which was disclosed by the company on March 3, 2008. The reverse stock split was effective with respect to stockholders of record upon the close of business on March 3, 2008.

The common stock has been traded on the NASDAQ Capital Market under the symbol "VRMLD" beginning on March 4, 2008, to designate that it is trading on a post-reverse-split basis, and will resume trading under the symbol "VRML" on April 2, 2008.

The company also disclosed that that in its 2007 financialstatements to be included in the company's Annual Report on Form 10-K, which the company expects to file on March 31, 2008, the audit opinion of PriceWaterhouseCoopers LLP will contain a "going concern" qualification. NASDAQ's marketplace rules require NASDAQ-listed companies to publicly announce the receipt of an audit opinion containing a "going concern" qualification.

About Vermillion Inc.

Based in Fremont, California, Vermillion Inc. (NASDAQ:VRMLD) --http://www.vermillion.com/-- fka Ciphergen Biosystems Inc. is involved in the discovery, development and commercialization ofspecialty diagnostic tests that provide physicians withinformation, with which to manage their patients' care and thatimprove patient outcomes. Incorporated on Dec. 9, 1993, thecompany, along with its prestigious scientific collaborators, hasongoing diagnostic programs in oncology, hematology, cardiologyand women's health with an initial focus in ovarian cancer.

At Sept. 30, 2007, the company's balance sheet showed total assets$26.86 million, total liabilities of $34.95, resulting to a totalshareholders' deficit of $8.09 million.

VISIPHOR CORP: Designates Michael Goffin to Board of Directors--------------------------------------------------------------Visiphor Corporation appointed Michael Goffin to the company's board of directors. The appointment is in direct relation to the $1.75 Million private placement with Quorum Investment Pool Limited Partnership.

"We are very pleased with the addition of [Mr.] Goffin to the company's board," Oliver "Buck" Revell, Visiphor chairman and former associate deputy director of the FBI, stated. "Wewelcome [Mr. Goffin's] knowledge and expertise to the team and are confident that his added leadership will help drive the company's upcoming achievement."

Mr. Goffin joined Quorum Group of Companies, Quorum Funding Corporation, in 1997 where he has since gained over ten years of investment, accounting and corporate financial experience. Prior to 1997, he held various progressive financial positions in the service industry and manufacturing sector.

Mr. Goffin sits on Quorum's Technology Advisory Committee, and is a board member of several publicly listed companies. His focus is on the management of portfolio investments, financial structuring, strategic modelling and due diligence. He also contributes to the Quorum mergers and acquisitions and divestiture team, including the sale of Newstar E-commerce to BCE Emergis.

Mr. Goffin graduated from the University of Toronto with a Bachelor of Arts degree in Economics and Environmental Management in 1994 and holds a Certified General Accountant designation.

Grant Thornton LLP raised substantial doubt about Visiphor Corp.'sability to continue as a going concern after auditing thecompany's financial statements for the period endingDec. 31, 2006. The audotors pointed to the company's incurred aloss from operations of CN$6,678,371 and deficiency in operatingcash flow of CN$2,602,248. In addition, the company incurredsignificant operating losses and net utilization of cash inoperations in all prior periods.

The Ad Hoc Committee say that the plan provides different treatment for the Ad Hoc Committee and other excluded creditors.

Gus Kallergis, Esq., at Jones Day in Cleveland, Ohio, relates that the plan violated the requirement of Section 1123(a)(4) of the Bankruptcy Code that claims in the same class receive the same treatment

The Ad Hoc Committee, which holds approximately $11.3 million of senior secured notes, tells the Court that the Debtors' disclosure statement fails provide sufficient information on:

-- any marketing of the assets or investment opportunity prior to deciding to deal exclusively with the favored creditors;

-- the negotiations leading up to the purchase agreement;

-- the arrangement or agreement between the DDJ Capital Management, LLC, and the other favored creditors regarding the ownership structure of the purchaser and control of the reorganized debtors, including any efforts by the DDJ Capital to obtain a return or credit on account of their junior unsecured notes; and

-- the valuation of the Debtors and the justification for the various releases offered to third-parties, including the officers and directors, indenture trustee and the favored creditors.

Accordingly, the Ad Hoc Committee asks the Hon. J. Vincent Aug, Jr., of the United States Bankruptcy Court for the Southern District of Ohio to hold that the Debtors' disclosure statement doesn't contain adequate information as required by Section 1125 of the Bankruptcy Code.

As reported in the Troubled Company Reporter on Feb. 15, 2008,the Debtors have reached an agreement with their senior secured working capital lender and holders of approximately 85% ofits senior secured notes on the terms of a restructuring to reducethe Company's long term debt.

The parties intend to implement the restructuring through a plan of reorganization under the U.S. Bankruptcy Code and, accordingly, the Company has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the Southern District of Ohio in Cincinnati.

In conjunction with the Chapter 11 filing, the Company fileda plan of reorganization setting forth the terms of therestructuring. This restructuring contemplates that all tradecreditors and suppliers will be paid in full, and that a newentity formed by the members of the Bondholder Group will purchasethe equity of the reorganized Company, subject to higher andbetter offers.

The Company also filed a motion seeking approval of certain bidprocedures that will govern the solicitation of competing offersas well as customary buyer protections. The pre-negotiated plan of reorganization is subject to approval by creditors and the Bankruptcy Court, and contemplates that the Company will emerge from Chapter 11 by July of this year.

DDJ Capital $35 Million DIP financing

The Company has received a commitment for up to $35 million indebtor-in-possession financing from certain funds and accountsmanaged by DDJ Capital.

Upon Court approval, the DIP financing, combined with the Company's operating cash, will provide sufficient liquidity to refinance the existing senior secured working capital facility, meet ongoing obligations and ensure that normal operations continue without interruption.

DDJ has also agreed to provide exit financing to reorganized Wornick in the event the plan of reorganization is approved and the equity of the reorganized Company is sold to the Bondholder Group.

Headquartered in Cincinnati, The Wornick Company --http://www.wornick.com/-- is a leading supplier of individual and group military field rations to the Department of Defense. Inaddition the company continues to extend its core capabilities tocommercial markets where its customers include, but are notlimited to, Kraft Foods, Inc., Gerber Products Company, as well asretail and grocery outlets including Walgreens Co., 7-Eleven, TheKroger Co., Publix Super Markets and Meijer.

Wornick specializes in the production, packaging, and distributionof shelf-life, shelf-stable, and frozen foods in flexible pouchesand semi-rigid products. The firm's two main lines of business are military rations (approximately 70% of revenues) and co-manufacturing for leading food brands (30%). The company producesboth individual (including MRE) and group rations (includingUnitized Group Rations-A or UGR-A) for the U.S. military. MREscomprise about 65% of military revenues.

The company and and five of its affiliates filed for Chapter 11protection on Feb. 14, 2008 (Bankr. S.D.O., Case No. 08-10654). Donald W. Mallory, Esq., Kim Martin Lewis , Esq., and PatrickBurns, Esq. at Dinsmore & Shohl LLP represent the Debtors intheir restructuring efforts. The Debtor selected Kurtzman CarsonConsultants LLC as claims, noticing and balloting agent. Anofficial committee of unsecured creditors has not been appointedin these cases. The company listed between $100 million and $500million assets and between $100 million and $500 million in debtsin its bankruptcy filing.

XM SATELLITE: State Counsels Balk at DOJ Approval on Sirius Merger------------------------------------------------------------------U.S. state counsels dispute the Department of Justice's decision allowing the merger transaction of SIRIUS Satellite Radio Inc. and XM Satellite Radio Holdings Inc. to proceed, Reuters reports. The consortium from 11 states want the Federal Communications Commission to lay down sanctions to preserve competition and protect consumers, supposing the agency approves the merger deal.

Reuters say that the merger deal has been labeled as anti-competitive by the traditional radio industry and by some U.S. lawmakers.

As reported in the Troubled Company Reporter on March 25, 2008,the Department of Justice informed SIRIUS and XM that it has ended its investigation into the pending merger of SIRIUS and XM withouttaking action to block the transaction. This decision means theDOJ has concluded that the merger is not anti-competitive and itwill allow the transaction to proceed. SIRIUS and XM each obtained stockholder approval for the deal in November 2007. The pending merger is still subject to approval of the Federal Communications Commission.

According to Reuters, the state attorneys are afraid that the result of the merger would control satellite radio access across the nation. They also encourage the FCC to require both companies to make interoperable radio receivers available to customers, offer different packages of channels on an a la carte basis, and divest some radio spectrum that would allow another competitor into the business, Reuters recounts.

As previously reported in the TCR, XM and SIRIUS have entered into a definitive agreement, under which the companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $13 billion, which includes net debt of approximately $1.6 billion.

Under the terms of the agreement, XM shareholders will receive afixed exchange ratio of 4.6 shares of SIRIUS common stock for eachshare of XM they own. XM and SIRIUS shareholders will each ownapproximately 50% of the combined company.

About SIRIUS Satellite

Based in New York, SIRIUS Satellite Radio Inc. (NASDAQ: SIRI) --http://www.sirius.com/ -- provides sports radio programming, broadcasting play-by-play action of more than 350 pro and collegeteams. SIRIUS features news, talk and play-by-play action fromthe NFL, NASCAR, NBA, NHL, Barclays English Premier League soccer,UEFA Champions League, the Wimbledon Championships and more than125 colleges, plus live coverage of several of the year's topthoroughbred horse races. SIRIUS also features programming fromESPN Radio and ESPNews.

About XM

Based in Washington, D.C., XM Satellite Radio Holdings Inc. --http://www.xmradio.com/-- parent of XM Satellite Radio Inc. (Nasdaq: XMSR), is a satellite radio company, with more than8.5 million subscribers. XM delivers entertainment and dataservices for the automobile market through partnerships withGeneral Motors, Honda, Hyundai, Nissan, Porsche, Ferrari, Subaru,Suzuki and Toyota.

* * *

As reported in the Troubled Company Reporter on March 28, 2008, Standard & Poor's Ratings Services said its ratings on Washington,District of Columbia-based XM Satellite Radio Holdings Inc. and XMSatellite Radio Inc. (CCC+/Watch Developing/--) remain on CreditWatch with developing implications, where S&P originally placed them on March 4, 2008, due to S&P's concerns over standalone refinancing risks XM might face if its merger with Sirius Satellite Radio Inc. (CCC+/Watch Developing/--) wasn't approved.

* S&P Downgrades Ratings on 81 Classes From 21 RMBS Transactions----------------------------------------------------------------Standard & Poor's Ratings Services lowered its ratings on 81 classes of asset-backed certificates from 21 U.S. residential mortgage-backed securities transactions from four issuers. S&P placed its rating on one of the downgraded classes on CreditWatch with negative implications. Concurrently, S&P affirmed its ratings on the remaining 103 classes from these and nine other transactions.

The downgrades reflect a reduction in credit enhancement as a result of monthly realized losses, as well as high amounts of severe delinquencies (90-plus days, foreclosures, and REOs). As of the February 2008 remittance date, cumulative realized losses for the downgraded transactions, as a percentage of the original pool balances, ranged from 0.98% (Soundview Home Loan Trust 2005-3) to 2.72% (New Century Home Equity Loan Trust 2005-D). Severe delinquencies, as a percentage of the current pool balances, ranged from 11.8% (NovaStar Mortgage Funding Trust 2004-1) to 35.78% (Soundview Home Loan Trust 2005-3). Overcollateralization is below its target for all of the downgraded transactions except Soundview Home Loan Trust 2005-OPT3. The overcollateralization for Soundview Home Loan Trust 2005-2 has been completely eroded. The pool factors for these transactions range from 10.69% (NovaStar Mortgage Funding Trust 2004-1) to 56.71% (New Century Home Equity Loan Trust 2005-C).

S&P lowered the rating on class M-7 from New Century Home Equity Loan Trust 2004-3 and placed it on CreditWatch negative due to the combination of high severe delinquencies and the amount of credit support the class may lose as a result of the transaction's step-down feature. S&P will closely monitor this transaction and take further negative rating actions if the amount of credit support relative to severe delinquencies continues to deteriorate.

The affirmations reflect sufficient credit enhancement available to support the ratings at their current levels.

Subordination, overcollateralization, and excess spread provide credit support for these transactions. A portion of the collateral in each NovaStar Mortgage Funding Trust transaction is insured up to a certain loan-to-value ratio by primary mortgage insurance issued by Mortgage Guaranty Insurance Corp., PMI Mortgage Insurance Corp., or Radian Guaranty. The collateral for these transactions consists of subprime mortgage loans.

* Fitch Says US CMBS Delinquencies Rose to 0.30% on February------------------------------------------------------------February U.S. CMBS delinquencies rose to 0.30%, only slightly higher than the historic low of 0.27% despite another increase in delinquent multifamily loans, according to the latest loan delinquency index from Fitch Ratings. The average loan delinquency index for the prior twelve months is also equal to 30 basis points.

'$130 million in newly delinquent multifamily loans were the major contributor to the slight rise in the delinquency index,' said Managing Director Susan Merrick. 'Multifamily delinquencies continue to be overrepresented in the index, now comprising 60% of all delinquent loans, though they only represent 14.6% of the Fitch-rated universe.'

Delinquent multifamily loans reached $1 billion at the end of last month, up by 14.5% compared to $894 million at the end of January 2008. Isolating the delinquent multifamily loans and comparing them to all multifamily loans in the Fitch-rated universe, the sector's delinquency index is 1.4%.

Loans secured by office buildings represent 30.4% of all properties within the Fitch-rated universe, but as of the end of February 2008, office delinquencies represented 11% of the overall delinquency index. Office delinquencies decreased by 1.1% in February, resulting in a delinquency index of 0.12%.

Retail loans represent 28% of the Fitch rated universe, and 15.2% of the overall delinquency index. Retail delinquencies increased by 5.8% in February, due to the addition of seven newly-delinquent loans comprising $22.1 million. The retail sector's delinquency index was 0.18%.

Hotel loans properties represent 10.5% of the total Fitch rated universe, but 5.1% of total delinquencies. Hotel delinquencies increased by 14.6% in February due to the addition of three newly delinquent hotels totaling $11.3 million. The hotel sector's delinquency index was 0.17%.

The seasoned delinquency index, which omits transactions with less than one year of seasoning, rose by the two basis points in February 2008, ending the month at 0.37%. Three transactions totaling $7.7 billion became newly seasoned, but none of them had any delinquent loans.

Fitch's index measures loans that are at least 60 days delinquent in the $562 billion Fitch rated portfolio, totaling approximately 42,000 loans.

* FTI Widens UK Presence with Forensic Accounting Buyout--------------------------------------------------------FTI Consulting Inc. acquired Forensic Accounting LLP, a consultancy firm which is expected to enhance its U.K. presence and breadth of service offerings. Terms of the transaction were not disclosed. The transaction is expected to close early next week.

Forensic Accounting is the UK's independent forensic accounting practice, providing accountancy based expert witness andinvestigation services in disputes, regulatory inquiries and due diligence reviews. Its clients are a mix of public and private sector organizations, including several UK regulators and magic circle law firms.

FA will be integrated into the company's Forensic and Litigation Consulting Segment, and will serve as the U.K.-based hub for FLC'sInvestigations and Forensic Accounting practice in the Europe, Middle East and Africa region.

Andrew Mainz, Raj Bairoliya, Julia Wallace-Walker and Dominic Wreford, co-founders of FA, and Ian Trumper, a partner at the firm, have joined FTI as senior managing directors. Additionally, 31 FA employees will be joining FTI.

"One of our key strategic objectives has been to replicate thebroad service platform that we have established in the major business and financial centers in the U.S.," Jack Dunn, president and CEO of FTI, commented. "The acquisition of Forensic Accounting is a strategic step that provides the foundation on which to build our forensic accounting offering in London to meet the escalating demand in the market."

"Equally important, the acquisition of FA, along with the purchases of Brewer Consulting and Sante and the launch of our restructuring practice within the past year, has made London FTI's largest office in the world, with over 400 professionals advising clients in the U.K. and Europe," Mr. Dunn continued. 'We are now able to offer an integrated range of forensic accounting, investigations, corporate finance/restructuring and communications consulting services in one of the world's most important centers of global commerce and finance."

"We know FA well from the joint assignments we have worked on with its excellent consultants," Mr. Dunn added. "It perfectly complements FLC's current presence in the United States, South America and Asia and, with its extensive regulatory work, gives us immediate credibility and relationships with the U.K. regulatory authorities that further enhance our reputation for independence and diligence in this critical market. As FLC's hub in Europe, FA will better enable us to service Global 1000 clients and the law firms and financial services institutions that support them both at home and abroad."

"We are delighted to become part of the FTI team," Andrew Mainz,chairman of Forensic Accounting LLP, said. "FA will be able to maintain the independent nature of our work and our focus on high standards of successful client service. This approach has made us the UK's leading independent forensic accounting practice, from a standing start in 2000."

"Going forward, we shall be able to use FTI's resources to improvethe level of service we offer our international clients," addedMr. Mainz. "With FTI's additional capabilities and relationships, we look forward to substantially increasing the scope of our business."

About Forensic Accounting LLP

Headquartered in London, Forensic Accounting LLP -- http://www.forensicaccounting.co.uk/-- has the resources needed to complete large assignments and offer a genuine alternative to the Big 4 accounting firms. The company's partners, directors and staff have experience, accumulated over many years, in the specialised areas of damages assessment, financial modeling, valuation, fraud investigation, reconstruction of accounts and asset tracing. Forensic Accounting is committed to making a genuine contribution towards the successful resolution of disputes.

About FTI Consulting

FTI Consulting (NYSE: FCN) -- http://www.fticonsulting.com/-- is a business advisory firm dedicated to helping organizationsprotect and enhance enterprise value in an increasingly complexlegal, regulatory and economic environment. With more than 2,400professionals located in most major business centers in the world,the company works closely with clients every day to anticipate,illuminate, and overcome complex business challenges in areas suchas investigations, litigation, mergers and acquisitions,regulatory issues, reputation management and restructuring.

* Bankruptcy Firm Watson & Maynez Starts El Paso, Texas Operation -----------------------------------------------------------------Attorneys Matt Watson and Omar Maynez have teamed up to establish a law firm with a unique package of services. By focusing on two main fields of law -- El Paso probate and El Paso bankruptcy law, they serve their Texas community with two highly developed skill sets. If you've ever wondered what an El Paso bankruptcy lawyer and an El Paso probate attorney have in common, it is this: a genuine desire to serve the community where they practice.

Omar Maynez, Esq., is joining Matt Watson, bringing his background in bankruptcy law, family law, immigration law, criminal defense and civil litigation to the table. When combined with Mr. Watson's focus on estate planning and probate, as well as family law and consumer bankruptcy, a comprehensive firm was created- ready and able to deal with each client's financial needs, with an special interest in assisting the aging population.

Greedy, profit-driven lawyers abound, it is important to remember that there are still good attorneys out there who are willing to fight for the rights of individuals. Watson & Maynez, P.C. is doing just that -- representing individuals who face bankruptcy alone, never the creditors seeking to collect. While most desire for probate- the process of handling the estate of the deceased- to go smoothly, Mr. Maynez's civil litigation experience ensures that should worse come to worst, this firm is ready to provide a strong advocate for the client.

Watson & Maynez, P.C. provides its community with professional El Paso bankruptcy chapter 7 & chapter 13 and El Paso probate needs. A federally designated debt relief agency, they work with people facing bankruptcy, foreclosure and repossession. In their estate planning and El Paso trusts and wills work, they are willing to fight hard for their clients who face even the most sensitive matters. These highly skilled attorneys have formed an alliance that can handle your financial needs in a far more comprehensive manner than either could have achieved alone.

Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition of the TCR.

For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852.

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